Dummy profit center or profit center standard hierarchy not defined

What causes this issue?

Controlling area &V1&, for instance, was determined from company codes
assigned to ledger &V2&. In controlling area &V1&, no dummy profit
center or no profit center standard hierarchy was defined. If you want
to use the scenario for Profit Center Accounting or Segment Reporting,
at least a dummy profit center and a profit center standard hierarchy
must be defined in controlling area &V1&.

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?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.