3625823 - Error: 'Area X cannot be used here', while using migration object 'CO - Cost center (new)'

In 'Migrate Your Data' application, during the simulation of migration object 'CO - Cost center (new)', below error is throw:

Area X cannot be used here, KS 070.

SAP S/4HANA Cloud Public Edition.

Cost center groups entered in the KHINR/Hierarchy area field is not assigned to standard hierarchy.

Cost center groups entered in the KHINR/Hierarchy area field must be assigned to the standard hierarchy.
If this is not the case, then the error message 'Area X cannot be used here, KS 070.' will be thrown. Refer the SAP Help Documentation: Cost Center Standard Hierarchy.
Also, check the respective migration object help documentation - CO - Cost center (new) | SAP Help Portal (Hierarchy Area).

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