Campaign Fund Prereserve Error

We are building MRM solution.We are building the solution in our server with the following component level

SAP CRM ABAP 7.0 with CRM system Kernel level  401 and Kernel release  720

We are using Standard Planning profile 4CRMMP03 [Marketing Cost Planning] for Campaign Plan cost.

We are trying to prereserve the plan cost in Fund by changing the user status and saving the campaign.We are getting the Error

"Creation of Funds Posting not possible for prereservation or reservation".Could anyone tell us where exactly the issue and what is the corrective steps to complete prereservation in campaign?

Thanks & Regards,

Anandh K