Forward exchange only possible for items with 'refurbishment'

What causes this issue?

You are trying to convert a subcontracting purchase order item into a
structure with subitems for forward exchange. In the purchase order item
the subcontracting type must be 'refurbishment' (with or without
material change). Forward exchange can only be performed for this
subcontracting type.

System Response

The system does not allow you to create a purchase order item for
forward exchange.

How to fix this error?

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

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.