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Error F5507 on MIRO. "The general master data of the G/L account 161000 is not maintained in the chart of accounts 1000"

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I was doing a MIRO w.r.t PO. I was getting the following error - "The general master data of the G/L account 161000 is not maintained in the chart of accounts 1000." I later went ahead and created the GL Account in the COA. now the error is recitified. But, I would like to know what happens in the background. 

 

Could someone explain me this?  How is the G/L account determined?


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