Segment could not be derived for account &1 &2

What causes this issue?

There is no suitable entry for the following account data in posting
area 0300:
Account,,&V1&
Company code,,&V2&
Account category,,&V3&

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?

Make an entry for the account category (if named) or the account.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.