Settlement cost element & is not supported

What causes this issue?

The entered cost element &V1& has not yet been created in the relevant
controlling area.

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?

Create cost element &V1& as an order settlement cost element, or
Correct your typing error.

Error message extract from SAP system. Copyright SAP SE.