Warehouse handling is required for this document
The location used on that line is set up to require warehouse documents, so the order cannot be shipped, received or posted directly from the order itself. Business Central expects a warehouse shipment, warehouse receipt, inventory pick or inventory put-away, created from the released document and registered or posted first. Release the document, create the matching warehouse document, handle the quantity there, then post.
Each location decides how much of the warehouse flow is mandatory through its Require Receive, Require Shipment, Require Put-away and Require Pick settings. As soon as one of them applies to the line, posting from the order would bypass the physical step the setup insists on, so the posting routine refuses and points you at the document type, number and line number that triggered it. The transfer variant of the message reads Warehouse handling is required for Transfer order = 1001, Line No. = 10000, and works the same way: the from-location governs the shipment side and the to-location governs the receipt side.
The error is a setup boundary rather than a mistake: someone is using an order-level shortcut at a location that was deliberately configured for warehouse handling. Keeping default locations correct on customer and vendor cards, and on the responsibility centres users work in, means lines rarely land on the wrong location by accident. If a location requires warehouse documents in theory but nobody uses them in practice, the honest fix is a decision by the administrator to relax the location setup, not a workaround on each order, and it should be made only when no warehouse documents are open for that location.
Yes, by clearing the relevant Require setting on the location card, but that is an administrator decision that changes how the whole location works. Do it only when no warehouse documents are open for that location, otherwise the open documents become orphaned and confusing.
Warehouse handling only applies to lines that move physical inventory. Service lines, charge lines, general ledger lines and drop shipment lines never touch the warehouse, so they post directly even at a location that requires picks or receipts.