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Why am I unable to save documents/invoices in QuickBooks Online?

Overview

For a new document (invoice), you are unable to save the document when you add an item for a product created from the same user interface. If the document saves, the sales tax calculated for this item is removed when the document (invoice) is reopened.
 
Steps to reproduce this issue:
  1. You imported around 1200 Product and Services items in QuickBooks Online.
  2. Created a new document (invoice).
  3. Created a new product from the transaction user interface itself. 
  4. Added this new product as an item in the document (invoice).
  5. Clicked Save.
  6. Error "Product & Service not selected! Message :: Product/Service should be selected for each line item" is displayed.

Environment

AvaTax for QuickBooks Online v7.1

Resolution

To avoid this error, in the document (invoice), click Estimate Tax before you click Save.