Cost object & still has actual costs that must be distributed

What causes this issue?

Distribution is active for the cost object hierarchy. This means that
before variances are calculated, the actual costs within the cost
object hierarchy have to be distributed to the lowest level (usually to
the production orders). There are still actual costs to be distributed
on the cost object ID.

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?

Distribute actual costs for the cost object hierarchy. Then repeat
variance calculation.
RESET N1.
Carry out distribution.
Calculate overhead surcharges.
Calculate the variances.
Settle the orders of the cost object hierarchy to stock.

Error message extract from SAP system. Copyright SAP SE.