Tax jurisdiction code & not allowed for tax calculation schema &

What causes this issue?

The jurisdiction code of item &V1& is not defined for this tax code.

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?

Check the jurisdiction code for the item, or the tax code.
Choose <H>Item -> More functions -> Taxes</> to determine which
jurisdiction code is defined.
The jurisdiction code is used for sales tax purposes in the USA.

Error message extract from SAP system. Copyright SAP SE.