How To Fix WS860 - Supplier-side settlement not allowed with settlement process category &

SAP Error Message - Details

• Message type: E = Error

• Message class: WS - Supplier Billing Document

• Message number: 860

• Message text: Supplier-side settlement not allowed with settlement process category &

What causes this issue?

A supplier-side settlement is only allowed for settlement process
category &V1& when the customer is settled directly through a single
document.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message WS860 - Supplier-side settlement not allowed with settlement process category & ?

  SAP Error Message:
  
  WS860 - Supplier-side settlement not allowed with settlement process category &
  
  Cause:
  This error occurs when you attempt to perform a supplier-side settlement (such as a down payment or invoice settlement) but the settlement process category assigned to the transaction or vendor master data does not permit supplier-side settlements.
  In SAP, the Settlement Process Category controls how settlements are processed for a vendor or transaction. Certain categories restrict or disallow supplier-side settlements to ensure correct financial processing and compliance with business rules.
  
  Explanation:
  
  The system checks the settlement process category during settlement processing.
  If the category is configured to disallow supplier-side settlements, the system throws WS860.
  The placeholder "&" in the message is replaced by the actual settlement process category code causing the issue.
  
  
  Solution:
  
  
  Check Settlement Process Category:
  
  Identify the settlement process category assigned to the vendor or transaction.
  You can find this in vendor master data or in the settlement rule configuration.
  
  
  
  Adjust Settlement Process Category:
  
  If supplier-side settlement is required, change the settlement process category to one that allows supplier-side settlements.
  This is done in customizing under:
  IMG ? Materials Management ? Logistics Invoice Verification ? Incoming Invoice ? Settle Invoice ? Define Settlement Process Categories
  
  Select or create a settlement process category that permits supplier-side settlements.
  
  
  
  Review Vendor Master Data:
  
  Check if the vendor master data has a settlement process category assigned that restricts supplier-side settlements.
  Adjust if necessary.
  
  
  
  Check Settlement Rule:
  
  If the error occurs during settlement rule processing, verify the settlement rule configuration.
  Ensure the settlement rule and process category align with the intended settlement process.
  
  
  
  Consult Documentation:
  
  Review SAP Notes or documentation related to settlement process categories and supplier-side settlements for your SAP version.
  
  
  
  
  Additional Information:
  
  Supplier-side settlement refers to the process where the vendor (supplier) is involved in the settlement, such as down payments or invoice settlements.
  Settlement Process Category is a key control parameter in SAP MM and FI modules that governs how settlements are handled.
  Incorrect configuration can lead to errors like WS860, preventing correct invoice or payment processing.
  Always test changes in a development or quality system before applying to production.
  
  
  Summary:
  
  
  
  Aspect
  Details
  
  
  
  
  Error Message
  WS860 - Supplier-side settlement not allowed with settlement process category &
  
  
  Cause
  Settlement process category disallows supplier-side settlements
  
  
  Solution
  Change settlement process category to one that allows supplier-side settlements
  
  
  Where to Configure
  IMG ? MM ? Logistics Invoice Verification ? Incoming Invoice ? Settle Invoice ? Define Settlement Process Categories
  
  
  Check
  Vendor master data, settlement rules, and transaction settings
  
  
  
  
  If you need help identifying the current settlement process category or changing it, please provide the vendor number or transaction details, and I can guide you through the steps.