Hi,
1. Settlement profile- you have to maintian settlemetn profile and it need to assign in the order type.
2. In the settlement profile you need assign allocation structure. In the allocation each line you have gove cost element or cost element.Like material, labour, etc..
3. If the variance posted to COPA, you have to assign PA allocation structure in the settlement profile.
Once you complete the above, create the order and run settlement , if you get the error, please share with me. i will guide you.
Thanks.
S.Sivakumar.