HU-managed storage location is not possible for packaging material item

What causes this issue?

The storage location you entered (&V1&) is HU-managed, which means that
only handling units can be posted to this storage location within the
context of <DS:GLOS.35CEB720B3CC735DE10000009B38F982>Handling Unit
Management</>. It is not possible to assign packaging material items to
an HU-managed storage location.

How to fix this error?

Select a different storage location.
IF &[SWITCH]S4H_DOCU_ON_PREMISE& = 'X'.

Procedure for System Administrators

You can control HU-management of storage locations in
<DS:SIMG.SIMG_MMIM_MB_DELIV>Customizing</>.
ENDIF.

Error message extract from SAP system. Copyright SAP SE.