Fund baseline error

Dear experts,

I am getting this error while try to baselie funding in fndng inquiry form:

"You must create and baseline a cost budget for a project using cost as the revenue accrual method, before the revenue budget can be created."

we use Cost/event distribution rule

Cost budget baselined under custom budget type not standard 'Approved cost budget'

should we need to only use standard cost budget type ? no right? we can use custom budget type name right?

Why system not considering cost budget baselined against custom budget type?

Thanks

Venkat