Error: Preceding document required for the invoice is not available

Dear SRM Experts,
We are on SRM7.0 with SAP 4.6 C as backend SAP R/3 system (Classic Deployment).
When we try to create an invoice in SRM wrt a PO ( with item category B ... created from a limit SC with invoice only option), we get an error :
Line 1: Preceding document required for the invoice is not available
We are not sure ..why this error is coming and what preceding document system is checking ?
As the PO is with item category B.. the GR is not required
Any inputs will be highly appreciated..
Thanks and Regards,
Ram

Hi!
This error usually comes up when the PO has the flag GR_BASEDIV set. Please check your PO and verify if it is flagged.
Best regards,
Christian Zeuch

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Error: Preceding document required for the invoice is not available

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