"The system cannot determine geographical information for this location and cannot derive a tax jur"

I get this error message ""The system cannot determine geographical information for this location and cannot derive a tax jurisdiction" as I try to enter a invoice transaction in Receivables and click on line items. What could be the reason for this? I have entered all valid values in the customer bill to address i.e. City, State and postal code. I see location id of customer address in HZ_LOCATIONS but no data in HR_LOCATIONS_ALL.