CU &1: Translation method &2 has check character 'E' (error)

What causes this issue?

Translation method &V2& that is assigned to consolidation unit &V1& is
checked as being incorrect.

System Response

The system is <ZH>unable</> to carry out a currency translation for the
consolidation unit.

How to fix this error?

In Customizing for translation method &V2& carry out the check, and
correct the error displayed. Carry out the check again, and make sure
that <ZH>no</> more errors are displayed. Then set the indicator
<LS>Active</> for the translation method.

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.