Valuation Rate not found for item (BOM)

I’m getting a valuation rate not found error in the product tree. However, the price is available, I have added the video. Where could I be going wrong?

You have selected the option that rate of materials will be based on valuation rate. Have you added the valuation rate in item master or do you have stock available for the item? You added the item price in price list. It won’t consider as valuation rate.

Thank You