Error "The default termstore for this site cannot be identified" in SharePoint 2010

Problem

I have a SharePoint Team Site http://serverName:5520/sites/MMS-CTH/. In the Shared Documents I tried creating a metadata column which should have a custom term set (local term sets which is site collection specific). When I click on the "Customize your term set" option in the Term Set Settings, as in:

termstore1.gif

I was getting the following error:

termstore2.gif

How to resolve:

  1. Go to Central Administration.
  2. Click on Application Management in the quick launch.
  3. Click on Manage Service Applications under Service Application section.
  4. Select Managed Metadata Service Connection and then click on Properties in the ribbon interface.

    termstore3.gif
  5. Select "This service application is the default storage location for column specific term sets." option in the Edit Managed Metadata Service Connection page.

    termstore4.gif
  6. Click on Ok.
  7. Now I was successfully able to create the custom term sets (local term sets which are site collection specific).

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