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Is your Business use Project Accounting. It seems Account generator not able to trace a valid budget account.
Hope you have access to metalink, please refer below link for details..
Seems your client may have cusotmized the a/c generator workflow. Open the w/f in Developer or ask someone who has worked oin it in your company.
I am also getting the same error. We are using an Inv item to be received at Expense or Asset Sub Inv. The expense account associated with the SubInv is an Asset Clearing Acount. We are using Encumbrance Accounting as well. We have checked the Account Generator but not able to be find any error. Please let know what we can check further.