How settlement rule will be created for Sales order with cost object

Dear Experts,

We are using product cost by sales order with valuated stock. In addition we are not using COPA

We also consume some materials at sales order level and at the end of month we want to do the result analysis and settlement for the same amount. In this case can any on explain how system will behave regarding settlement of sales order cost and what entries will get pass in the system.

In our case we have done below activities...

we have created sales order,

All production order activities completed till final GRN including month end activities

Material consumption against sales order

Result analysis executed

At the time of sales order settlement, system throwing error (Sender doesn't have valid receiver, please create settlement rule for sender object)

Then i checked in sales order there sales order settlement rule not defined.

I guess this settlement rule need be generated by system automatically. If not, please let me know the process of it.