Postal code &1 is not permitted for city &2 in country &3

What causes this issue?

The specified postal code is not permitted for the specified city.
Display the permitted postal codes in the city with the transaction
SR12.

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?

Specify the correct postal code (or the correct city).

Error message extract from SAP system. Copyright SAP SE.