Referenced document &1 &2 must be reduced in currency &3

What causes this issue?

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

System Response

Referenced document &V1& line &V2& must be reduced in local currency
(&V3&) only. (This option is set.)

How to fix this error?

Post the document in local currency or change the option in the
referenced document line.

Error message extract from SAP system. Copyright SAP SE.