Your selection is based on &1 that are not in declaration country &2

What causes this issue?

You attempted to select data based on organizational units that are not
located in the corresponding country of declaration. In order to create
an accurate declaration, you should select only based on organizational
units that originate in the same country (country of declaration).
The following entries illustrate common errors:

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

The company code(s) you entered have plants assigned to them that are
not in the relevant country of declaration.
You entered specific plants that differ from those in the country of
declaration.

System Response

How to fix this error?

Check your entry.

How can this happen?

The following example may help explain the problem:
You create an invoice document based on a German company code. The
goods are sent to the customer from a plant in France, which is
assigned to the German company code in the organizational structure.
You want to create a German intra-European Union trade statistics
(INTRASTAT) declaration for goods dispatch, so you start a data
selection for the German company code. The invoice document for the
INTRASTAT declaration is then included in the selection, which is
incorrect, since these declarations must only be reported in the
countries that are physically involved in the goods movement. The
invoice document in this example should only appear in a French INTRAS
TAT declaration for goods dispatch.

Error message extract from SAP system. Copyright SAP SE.