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Can't create account when publishing project to Project Server

MS Project Server Spooler error

This error is caused by project authors (project managers) using local resources in project plans. By default, account creation is set to deny in Project Server, therefore, project managers can’t create accounts for new resources in the system. Project attempts to create accounts for local resources. A local resource is a resource that is not in the Enterprise Resource Pool. Local resources can have Project Server accounts if you want them to. Local resources are indicated in the system as "local" by its indicator icon in the indicators column of the Resource Sheet view. The indicator for this resource will be a single head with a piece of paper to the left of it.



Resolution

Open Microsoft Project and log into Project Server with an Administrator account
Click Tools - Enterprise Options - Open Enterprise Resource Pool selecting resources to update
Double click on a resource
On the General tab, set Workgroup value to none
Leave the email address blank
Alternately, setting the resource type to Generic will prevent the error.