Sales Order, Item: Enumerated text order, packing slip does not exist

I am using AX 2012 R3 CU12.
So far I have checked:
- Inventory Management > Setup > Posting > Posting. Both Packing Slip and Packing Slip offset have an account attached.
- Inventory Management > Setup > Inventory > Item Model Group. I have checked Post Physical Inventory Here (along with other options):

- None of the ledger calendars are on hold except one for next year (2018).
- Accounts Receivable > Setup > AR Parameters, Updates menu. I have unchecked the post packing slip checkbox.

I am either doing something wrong or none of these things fix the issue. Does anyone know how to fix this issue or have any other suggestions?
Thanks!
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