How To Fix WS048 - Settlement document type is not of settlement doc category '&' or '&'

SAP Error Message - Details

• Message type: E = Error

• Message class: WS - Supplier Billing Document

• Message number: 048

• Message text: Settlement document type is not of settlement doc category '&' or '&'

What causes this issue?

Settlement document type &V1& does not have the required settlement
document category &V2& or &V3&.

System Response

The system does not permit further processing of the document.

How to fix this error?

Assign settlement document category &V2& or &V3& to settlement document
type &V1&.

Error message extract from SAP system. Copyright SAP SE.