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Budget exceeded while settlement with cost element exempt in sap ps

Hi Experts,

I am getting critical error while settle level 2 wbs element to Level 1 WBS element. We are getting error " Item 003 WBS element 30-13858 budget exceeded, Message no. BP603"

We have structure of Level 2 WBS element and overall budgeting at level 1. Posting cost on Level 2 WBS element. Settlement rule Asset rule maintaned on WBS level 1 and level 1 wbs maintaned on level 1 as settlement rule.

Also cost element is exempted.

But still we are getting budget exceeded error.

We have already check note.159850

Kindly help to resolve.

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