You can only inspect by characteristic using the inspection specification

What causes this issue?

You can only inspect based on characteristics for inspection type &v1&
if you inspect with a task list, material specification, configuration
or batch determination.

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?

Check the indicator in the inspection setup (Quality Management view of
the material master).

Error message extract from SAP system. Copyright SAP SE.