Distribution type &1 not found

What causes this issue?

Distribution type &V1& is not defined in Customizing.

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?

Define distribution type &V1& in Customizing, or choose an existing
distribution type.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.