No Funds Center error while creating Production Order in CO01

Hi SAP Consultants,

I am trying to save production order in transaction CO01 but I am getting error saying "No funds center entered/derived in item 00001"

Diagnosis

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In company code (&2) the component Funds Management is active. This requires the entries or the derivation of a funds center.

You can use the following elements to derive the funds center: company code / account or CO object .

Procedure

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Enter a funds center or ensure that the funds center can be derived from the possible assignments by:

assigning a funds center in the commitment items- master record or maintaining the assigning of a funds center to the CO object.

My company is a public sector company and Funds management is active.

Any help would be appreciated.