Destination &1 has incorrect Unicode setting; adjust it to destination

What causes this issue?

The Unicode settings for destination &V1& do not match the source
system.

System Response

Conversion errors might occur during data transfer.

How to fix this error?

Change the Unicode settings in the maintenance of the RFC destination
(transaction <DS><DS:TRAN.SM59>SM59</></>) on tab page <LS>MDMP <(>&<)>
Unicode</> so that they match your settings in the source system.

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.