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"...funding categories are not selected" error while saving funding source association

QUESTION:

When associating a Funding Source to a Project, the message "Some mandatory parent funding categories or funding categories are not selected in the funding source association. The funding source association cannot be saved" appears. 


ANSWER:

At least one entity type (i.e. Project) is selected as "Mandatory" for a funding source category, and this category is not selected in the dialog. The configured funding source category has to be selected for each funding source association of entities of this type (i.e. for each Project), or the entity (i.e. Project) should not be marked as "Mandatory" for any funding source category.