Cost element category & not allowed for postings to cost centers

What causes this issue?

You made an assignment to an cost element of type &V1&.

System Response

This type of cost element cannot be combined with cost centers.

How to fix this error?

Do not assign this cost element to a cost center.
Or, check with the CO master data transactions whether the cost element
type is set correctly.
Alternately, check whether you posted the correct cost element and/or
account.

Error message extract from SAP system. Copyright SAP SE.