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Author's profile photo Ameya Beri

Production Order Settlement | Troubleshooting – CO630 – Distribution rule could not be created automatically


Many times when we try and test a new order type we come across the error CO 630 – Distribution rule could not be created automatically. This message comes up when you are trying to create a production order, and the system cannot determine the settlement rule automatically.

In this blog post I will discuss the checks you should perform to troubleshoot this error. Below is a snapshot of the error during production order creation.

Troubleshooting Checks:

Check 1 – Check the order type configuration using transaction OPJH and find out if a settlement profile is assigned to the order type

Check 2 – Check the Order Type Dependent parameters configuration using transaction OPL8 and check that default distribution rule is assigned in Cost Accounting Tab

Check 3 – Check the settlement profile using transaction OKO7  – Here you should check that in this example, that the settlement against material is not disallowed & multiple receivers are not marked as Settlement Required. There should not be more than 1 valid receivers marked as Settlement Required.

Check 4 – Check that the material type is a valuated material using OMS2 – the material type should be valuated for settlement against Material


  • If you perform all these checks, then you will be able to avoid this error
  • A workaround for this error, is you can maintain the settlement rule manually, example you could settle the production order to a cost center or to an internal order by manually entering the details
  • This error is during production order creation, but the cause of the error could be the settings in production order type, settlement profile or the material type setup, hence it is important to involve Finance and Materials Management cross functional teams in troubleshooting if necessary
  • Please share your feedback, if you find this useful, and add any tips to improve
  • I found numerous questions around this error, and thought it would be helpful to capture all checks in one blog post


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      Author's profile photo Shanmugam Sathiyamurthy
      Shanmugam Sathiyamurthy

      Very helpful blog. Helped resolve a key issue. Thank you for posting this.