Cost element & is not an assessment cost element

What causes this issue?

Cost element &V1& is not defined as an assessment cost element. This
cost element has cost element type &V2& instead of cost element type
&V3& for assessment.

System Response

The SAP System only recognizes assessment cost elements here.

How to fix this error?

Enter a valid assessment cost element with cost element type &V3&. You
can list all the valid assessment cost elements in your controlling
area with the F4 key. Then choose a cost element from this list.

Error message extract from SAP system. Copyright SAP SE.