Ledger &, CA &, P&L type &: No retained earnings account assigned

What causes this issue?

You are carrying out a posting to a previous year. This involves both
making a posting to ledger &V1& and automatically carrying forward the
balance for this ledger.
Profit and loss accounts are now carried forward to a retained earnings
account which you can assign per chart of accounts and income statement
type (in Customizing).
In Customizing, you assigned the chart of accounts &V2& to this ledger
(at ledger/company code). The income statement account type of the
account of the current line item is &V3&. This means that to determine
the retained earnings account, the system searches for the entry: Chart
of accounts &V2&, income statement account type &V3&. This entry does
not however exist.

System Response

Posting is terminated.

How to fix this error?

Assign a retained earnings account for chart of accounts &V2& and
income statement account type &V3&:
<DS:TRAN.GCS7>Proceed</>

Error message extract from SAP system. Copyright SAP SE.