There's no layer cost for the quantity that's being depleted. There could be several causes.

Summary:

Getting the below error - How can we solve this? The costing is enabled for the items as well as it has an item cost associated.

There's no layer cost for the quantity that's being depleted. There could be several causes. The transaction could be depleted from a receipt that's not costed because the cost is missing. Or this issue is set to negative inventory depletion and there are no other receipts with a cost. Or the cost profile is set to use the first receipt layer option and there are no other receipts with a cost and quantities that are not depleted.