Create by reference not allowed for funded program category &1

What causes this issue?

You tried to use a funded program as reference source which has a
special <DS:DE.PSM_FP_CATEGORY>funded program category</>. It is not
possible to use funded programs created from other applications as
references.

System Response

Processing stopped.

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.