Storage location &1 managed in EWM warehouse &2 and cannot be used.

What causes this issue?

Storage location &V1&, which is managed in SAP Extended Warehouse
Management (SAP EWM) in warehouse &V2&, cannot be used for this
activity. Only storage locations are allowed that are managed either in
Inventory Management (MM-IM) or in Warehouse Management (LE-WM).

System Response

A dialog box appears with an input field for the storage location in
which you must enter a storage location that is managed in Inventory
Management (MM-IM) or in Warehouse Management (LE-WM).

How to fix this error?

Select a valid storage location using the value help or enter a storage
location that is not managed in SAP EWM.

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.