Too many versions for legal valuation: &1

What causes this issue?

The versions &V1& are created as actual version with legal valuation in
controlling area &V2&.

System Response

The actual versions in Overhead Management (CO-OM) are used to
represent various valuations of a transaction within transfer prices.
Every valuation may be represented in one version at the most. However,
you have selected more than 1 version as actual version with legal
valuation.

How to fix this error?

Correct your version settings for controlling area &V2&.

Error message extract from SAP system. Copyright SAP SE.