'Distribution type is not valid for this profile' occurs when trying to create a Profile in Revenue and Expense Deferral.
In order to use the deferral profile properly it is required to have the distribution account highlighted as to the one that is being used with deferrals. If you do not have the account highlighted, then you will receive the error 'this profile isn't setup to use this distribution type'.
On page 21 of the deferral PDF, it states that in the distribution entry to select the distribution you want to defer. Once this is done, you should be able to continue going to the Extras menu and to then choose the Deferral profile.
This article was TechKnowledge Document ID:28829