Selection via hierarchy: enter hierarchy type

What causes this issue?

The hierarchy type is a mandatory specification for a "V1&".

System Response

The selection cannot be restricted using hierarchy data.

How to fix this error?

Please specify a hierarchy type.
If you don't wish to restrict the selection using a hierarchy, delete
your entries in the fields of the group box "&V1&" and in the
hierarchy-specific "&V2&" so that this message is not issued again.

Error message extract from SAP system. Copyright SAP SE.