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This Error Message is caused by sale price schedule not being set up in the Default Inventory Item under the retail tab.
To Edit the Default Inventory Item, open the setup wizard, click on inventory, then the default items. Next you will edit the master default item if it is the only default item you are using. If you have set up individual default items for each of your categories, then select the category for the item that is giving you the error.Double click it to open the default item for that category. Click on the retail tab, and it should look something like this:
The right hand columns are your sale columns, and usually they will be discount from list. if any of them are blank you will need to correct them as this is what is giving you the error.
Created by Steve Wind November 1 2011