Report Designer + Query

I am working on BI 7.0

When I am trying to open a query in Report Designer, it is showing a pop-up window having message "Query contains variable(s) Use a query view(variables are filled)", and after pressing OK.it returns me the initial screen.

I have variables in query.

Is this a standard feature of BI 7.0?

How should I proceed to do formatting of the query.