Production order has status DLV/TECO: Set "cancel WIP"

What causes this issue?

The production order has either the status DLV (Delivered) or TECO
(Technically completed). <DS:GLOS.work_in_process>Work in process</>
may have been calculated for this order in a previous period and
transferred to Financial Accounting during settlement.
The work in process must be canceled with status DLV or TECO. The
setting in Customizing for <DS:GLOS.WIP_calculation>WIP calculation</>
must specify that WIP is canceled when the order has one of these
statuses.

System Response

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

How to fix this error?

Change the Customizing settings for WIP calculation such that work in
process is canceled at the status DLV and the status TECO.

Error message extract from SAP system. Copyright SAP SE.