Item Fulfillment Error: "This sales order cannot be fulfilled because it has a payment hold."

This happens when Sales Orders are placed on payment hold due to failed authorization. Instead of getting another authorization, the sales order is edited and changed to an invoice form. When the form is changed, the payment hold warning will no longer show. However, before since the payment hold was placed on the order, it still cannot be fulfilled. Thus, if you decide to change the order form to invoice, the payment hold needs to be overridden first.

1. View the sales order and go to History tab > System Notes subtab.
2. Confirm that the "Custom Form" has been changed from a cash sale form to an invoice form. 
3. Edit the sales order and change the form back to cash sale.
4. Set the Payment Method to Credit Card (Visa, MasterCard, etc) under the Payment/Billing tab. 
5. Save the sales order. 
6. The payment hold warning message should now be up on the sales order. (At this point, this sales order is now available in the Manage Payment Holds page.)
7. On the Manage Payment Holds Page, Click on Override Payment Hold button.
8. Edit the sales order, change the form back to invoice. 
9. Set the Terms if applicable and save it.
10. Fulfill the sales order.