Diagnosis
You are entering user-specific setting for BOM maintenance.
You have entered &V1& as the default item category for material or textitems. However, this item category is neither a material item nor atext item.

Procedure
Please display a list of the item categories defined in your company.To do this, look at the settings in Customizing (Bills of material)Item data -> Item categories.
For a material item, you can only use an item category for whichmaterial entry is defined.
For a text item, you can only enter an item category which contains thetext item indicator.