Order BOM costing can only be carried out for valuated stock

What causes this issue?

Order BOM costing can only be used in connection with valuated sales
order stock. Item &v2& of sales document &v1& does not contain any
valuated sales order stock. The requirement class found by the system
for the item determines whether an item contains valuated sales order
stock.

System Response

Order BOM costing cannot be used for this item.

How to fix this error?

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

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.