CRM/ISU issue after upgrade from CRM5.0 to CRM 7.0

Hi;

After the upgrade of CRM from 5.0 to 7.0 we are facing 1 issue.

After upgrading to CRM 7 EHP 3 we are getting error in the Service Contract Creation in CRM.

We are following the below mentioned steps.

1. Create the Service contract- Give the Sold to Party details
2. Give the Product Details for the line item (CLI for the service contract) and accept configuration
3. Give the Object list component /Ibase component details and save the service contract
4. Upon saving the service contract we are getting the error “Assign Product 1 to a point of delivery”.

Any pointers to resolve this issue ?

regards;

Sagar