No batches are defined for material &1 in plant &2

What causes this issue?

You have created a refurbishment order for material 1. No batches are
defined for this material in plant 2.

System Response

The system permits refurbishment of this material.

How to fix this error?

In the <ZK>refurbishment</> block you can only specify a plant and
a storage location.

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.