Storage location &1 is HU-managed - cannot be a partner storage-location

What causes this issue?

The storage location that you entered is HU-managed. Since the point of
a partner storage-location is to be a predefined storage location for
inventory that is not packed, this storage location cannot be used as a
partner storage-location.

System Response

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

How to fix this error?

Select a storage location that is not HU-managed.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.