Setup > Company > Classes > Edit Class > Adding subsidiary throws error message: You cannot remove subsidiary A because this record is used on a transaction for subsidiary A

Editing a class to add new subsidiary throws error message: You cannot remove subsidiary X because this record is used on a transaction for subsidiary X. To be able to add new subsidiary, follow the steps below:

1. Navigate to Setup > Company > Subsidiaries and check Show Inactives box
--Notice that subsidiary X is listed and is inactive
2. Navigate to Setup > Company > Subsidiaries > Edit subsidiary X
3. Uncheck Subsidiary is Inactive box. Save
4. Navigate to Setup > Company > Classes > Edit Class
5. Add subsidiaries successfully
6. Save
7. Navigate to Setup > Company > Subsidiaries > Edit subsidiary X
8. Check Subsidiary is Inactive box and click Save.