New company code &1 cannot be assigned to ledger &2

What causes this issue?

Company code &V1& is not assigned to ledger &V2&.

System Response

You can only assign accounting principles to existing combinations of
ledger and company code.

How to fix this error?

To assign the company code &V1& to ledger &V2&, you can do this using
customizing activity
<DS:SIMG.FINSVC_LEDGER>Define Settings for Journal Entry Ledger</>.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.