You must bring CTE out of inline view like this:
SELECT
r.refund_transmission_queue_key,
r.financial_refund_request_key,
r.financial_transaction_key,
r.transaction_status_key,
cast(refund_amount as number(19,4)) ,
CAST(TOTAL + r1.total AS NUMBER(19,4)) total
FROM
(
select q.refund_transmission_queue_key ,
req.financial_refund_request_key ,
txn.financial_transaction_key ,
txn.transaction_status_key ,
ABS(TXN.COLLECTION_AMOUNT) REFUND_AMOUNT ,
ABS(txn.collection_amount) total ,
ROW_NUMBER() OVER ( ORDER BY Q.refund_transmission_queue_key ) rn
FROM its_refund_transmission_queue Q
JOIN its_financial_refund_request req
ON req.financial_refund_request_key = Q.financial_transaction_key
JOIN its_financial_transaction txn
ON TXN.LINKED_TRANSACTION_KEY = Q.FINANCIAL_TRANSACTION_KEY
JOIN r_financial_trans_type_x_cat TC
ON TC.fin_transaction_type_key = txn.fin_transaction_type_key
JOIN r_financial_tran_category C
ON C.FINANCIAL_TRAN_CATEGORY_KEY = TC.FINANCIAL_TRAN_CATEGORY_KEY
WHERE TXN.TRANSACTION_STATUS_KEY = V_PENDTRANSMSN_TRANS_STATUS_KE
AND C.CODE = 'REFUND'
) r
JOIN cte r1
ON r1.REFUND_TRANSMISSION_QUEUE_KEY < r.REFUND_TRANSMISSION_QUEUE_KEY
where r.rn = 1
AND total + r1.total <= v_max_dollars;