If a distribution was paid to you, not made payable directly to the new Roth IRA for your benefit, a Form 1099-R is required. If made payable to another Roth IRA directly, it would instead be a trustee-to-trustee transfer which is not reportable.
A regular distribution from a Roth IRA would be reported on Form 1099-R would be reported on Form 1099-R with either code J, T or Q depending on your age, and how long you had the Roth IRA. Since the incorrect Form 1099-R had code 7, presumably you are over age 59½, so a distribution from a Roth IRA would be coded with T unless you had the Roth IRA account before 2014 in this case and would instead have code Q.
With the books at the original financial institution corrected to show the original account as a Roth IRA, a corrected code 7 Form 1099-R will be needed showing that $0 was distributed from a traditional IRA.
