Material/product &1: batch management indicator not set

What causes this issue?

You are trying to assign a batch class for class type &3 to material &1
Batch level in the system is set to: &2
0 = batch unique at plant level (MARC-XCHPF)
1 = batch unique at material level (MARA-XCHPF)
2 = batch unique at client level
The "Batch management requirement indicator" for material/product &1 for
the specific batch level is not set.

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 if material/product &1 exists
Check if the "Batch management requirement indicator" of your
material/product &1 is set on the correct batch level

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.