Material type & not supported for BOM item

What causes this issue?

The material has a material type which (in combination with the BOM
usage and the material type of the BOM header) does <ZH>not</> allow
the material to be used in a BOM item.

How to fix this error?

Check your entries.
In the IMG for production (BOMs), you define which material types for
BOM item materials can be used with which material types for the BOM
header and BOM usages.

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

IF &DEVICE& = 'SCREEN'
If you are authorized, you can change the allowed combinations of BOM
usage, material type for BOM header, and material type for BOM item.
Do you want to change these settings?
<DS:TRAN.OS14>Proceed</>
ENDIF

Error message extract from SAP system. Copyright SAP SE.