Payment guarantee categ. & does not allow financial doc. categ. or type!

What causes this issue?

During maintenance of the form-of-payment guarantee, you have entered a
guarantee with the payment guarantee category &V1&, and you have
specified either

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

the financial document category or
the financial document type or
both
The payment guarantee category &V1& does not allow a financial
document. For this reason, the above specifications are not allowed.

System Response

The system issues an error message.

How to fix this error?

Correct your specifications.

Error message extract from SAP system. Copyright SAP SE.