Which customizing settings are mandatory for defects recording with inspection lots?

Defects recording for inspection lots (e.g., transaction QE51N) requires specific Customizing:

Assign a Notification Type to an Inspection Type (A): In Customizing (SPRO > QM > Quality Inspection > Inspection Lot Creation > Maintain Inspection Types), linking a notification type (e.g., Q3) to an inspection type (e.g., 01) enables automatic or manual notification creation for defects, a mandatory step for integration.

Define the Report Type (D): The report type (SPRO > QM > Quality Inspection > Defects Recording > Define Report Types) must be defined to determine the defect recording layout and process, a required setting.

Activate the Workflow Template (B): Workflow is optional for notifications, not mandatory for defect recording.

Activate Reference to Existing Notifications (C): This is an optional enhancement, not a requirement.

Thus, "Assign a notification type to an inspection type" and "Define the report type" are the correct answers.References: SAP Help Portal - "Defects Recording Customizing"; SAP S/4HANA QM Customizing Guide - "Inspection Types".