Inspection lot cannot be created

What causes this issue?

It is defined for material &v1& in plant &v2&, that a new inspection
lot should be created if a source inspection is rejected. In the
inspection setup for the material, no inspection type is active for
this goods receipt.

System Response

Inspection lot &v3& was rejected and no new inspection lot can be
created. As a result, the goods receipt for this purchasing document
item is not possible.

How to fix this error?

Delete the material document item if you want to post the other items
for the material document as a goods receipt. You must activate an
inspection type for the goods receipt to post the goods receipt for
this purchasing document item.

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.