(Co. code &1, trans. &2, condition type &3) condition type not permitted

What causes this issue?

The transferred condition type is not permitted here. You need a
condition type with classification "structure characteristics" and
condition type "interest capitalization".

System Response

The system flags the transaction as an error. It cannot be processed.

How to fix this error?

Correct the data record or make the necessary settings in Customizing.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.