Symptom
When trying to change the Settlement Profile to YNS (Not Settlement) for a Project / WBS Element in app 'Project Control - Enterprise Projects', you receive the error message KD616 "Adjust distribution rules before changing the settlement profile". The reason to set as not relevant for settlement is to be able to close the Project without checking the balance.
Environment
SAP S/4HANA Cloud
Cause
As the long text of the message says, this usually happens when you already have a settlement rule used for the Project (and therefore cannot be deleted).
Resolution
Since the goal is to set the project as not relevant for settlement in order to close it, you can add another rule of type FUL, which will pick up all costs (also from previous periods) and then settle the current period. Afterwards, the balance will be zero and you can close the project.
See Also
3296585 - Settlement of Costs from previous years
Keywords
Settlement Profile, Rule, Balance Not Zero, KD616 , KBA , CO-OM-OPA-F-2CL , Period-end Closing (Public Cloud) , CO-OM-OPA-F , Period-end Closing , Problem