3306977 - Error while activating the local rate table check box in rate table template

User is using the proxy for Freight agreements creations. When user is trying to create a rate table template as a basis for the proxy after system upgrade, there is a new checkbox which is required to be enabled for local rate table to be created. When this is activated system is raising an error:

You must specify a default type for local rate tables. /SCMTMS/TC_RATES 040    

S/4 HANA 2020+

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