No surplus WBS element defined for plant & and grouping WBS element &

What causes this issue?

No scrap WBS element has been defined for the appropriate plant and
grouping WBS element.

System Response

The scrap cannot be assigned. This leads to incomplete cost
distribution.

How to fix this error?

Create a WBS element for the <DS:TRAN.PEG04>assignment of scrap</>
either on plant level or on grouping WBS level.

Error message extract from SAP system. Copyright SAP SE.