Inventory Revaluation is no longer the first transaction in the item's history" during Creation of a Transaction for an Item with Standard Costing Method

When a user creates a transaction for an item with Standard Costing Method, an error message comes up: "Inventory Revaluation is no longer the first transaction in the item's history."

This message is encountered unless the following steps are taken:
  
1. A Standard Cost Version has been created under Lists > Accounting > Standard Cost Versions 
2. A Planned Standard Cost has been assigned to the item under Lists > Accounting > Planned Standard Costs
3. Update the standard cost of items with the effective date by running the Inventory Cost Revaluation under Lists> Accounting> Revalue Standard Cost Inventory

Note: 
1.  Additional information can be taken from the Help Guide for more information on the three necessary steps that needs to be taken

2. The step involving Planned Standard Cost is not always necessary. If you chose to simply activate an existing Cost Version, you can do so by manually revaluing a single item through Transactions > Inventory > Revalue Inventory Cost