RFC destination &1 does not exist

What causes this issue?

The RFC destination of the same name, required to start LDAP Connector
&V1&, does not exist.

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?

Create the RFC destination in transaction <DS:TRAN.SM59>SM59</>. When
doing so, use connection type <LB>T</> (TCP/IP connection), and the
activation type <LS>Registered server program</>. We recommend that you
enter &V1& as the program ID. You must also specify the gateway with
which the LDAP Connector should logon.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.