Milestone billing plan does not allow the use of credit memos

What causes this issue?

When you use a credit memo type with SD document category #O# as the
default billing type in a milestone billing plan, please note that the
respective value of this credit memo date is not recognized as such by
the system when calculating the billing plan values. This results in
incorrect value updates in CO, CO-PA, VIS, BW, PSM-FM, Credit
Management, and Payment Cards. It is also NOT possible to determine the
remaining billing value with billing plan rule #3# (Final Invoice).

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?

Only use this credit memo type if you are aware of the above mentioned
restrictions.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.