How To Fix XC305 - &1: Processing of returns only possible as of SAP APO 4.0

XC305 - Overview

• Message type: E = Error

• Message class: XC - Message Class for Core Interface

• Message number: 305

• Message text: &1: Processing of returns only possible as of SAP APO 4.0

What causes this issue?

You have attempted to set up the processing of SD returns for system
&V1&. This system is specified as release &V2&. However, the processing
of SD returns is only supported as of SAP APO 4.0.

System Response

The setting is saved. However, this setting will lead to a transfer
error if your SAP APO release is actually earlier than SAP APO 4.0.

How to fix this error?

Ensure that the correct SAP APO release is maintained for system &V1&.
This setting is made in C
Setting Up the System Landscape</> -> <ls>Specify SAP APO Release</>
(transaction <DS:TRAN.NDV2>NDV2</>). Make the relevant (permitted)
setting in this transaction.

Error message extract from SAP system. Copyright SAP SE.

XC305 - Details

• The SAP error message XC305 indicates that the processing of returns is only possible in SAP Advanced Planner and Optimizer (APO) version 4.0 or higher. This error typically arises when a user attempts to process return orders or returns in a version of SAP APO that does not support this functionality.
  
  Cause:
  
  Version Limitation: The primary cause of this error is that the version of SAP APO being used is older than 4.0. The functionality for processing returns was introduced in version 4.0, and earlier versions do not support this feature.
  
  Configuration Issues: There may also be configuration settings that are not properly set up to handle returns, but the main issue is usually the version.
  
  
  Solution:
  
  Upgrade SAP APO: The most straightforward solution is to upgrade your SAP APO system to version 4.0 or higher. This will enable the processing of returns as intended.
  Check Configuration: If you are already on version 4.0 or higher,