Budget Check Error when Selecting Item on Payment Worksheet Application

Error: Item #####  has not successfully passed budget checking. (6040,768). This item is not yet available for payment processing. If you have changed the amount value for this item, you must delete the item from the worksheet in order to proceed.

Error when selecting an item on the payment worksheet application page. This item originated from Billing and passed budget check. The revenue estimate status is B (Billing). Any idea what could cause this error. We are not able to proceed with the payment application.

Steps to arrive at the error:

1) create an AR deposit (payment predictor)

2) Enter the reference items under the payment tab