No Such File or Directory Error when Creating an Offer (Doc ID 1168832.1)

Symptoms

When attempting to create an offer, at the point of entering the salary, the following warning occurs:

Warning: There is no reporting group defined with a purpose of iRecruitment for this business group occurs.

You can continue and when reaching the Offer Review page, the following error occurs:

ERROR
-----------------------
oracle.apps.fnd.framework.OAException: oracle.apps.xdo.XDOException: <directory path> (No such file or directory)
at oracle.apps.fnd.framework.OAException.wrapperException(OAException.java(Compiled Code))
at oracle.apps.fnd.framework.OAException.wrapperException(OAException.java(Compiled Code))
at oracle.apps.fnd.framework.OAException.wrapperInvocationTargetException(OAException.java(Compiled Code))
at oracle.apps.fnd.framework.server.OAUtility.invokeMethod(OAUtility.java(Compiled Code))
at oracle.apps.fnd.framework.server.OAUtility.invokeMethod(OAUtility.java(Inlined Compiled Code))
at oracle.apps.fnd.framework.server.OAApplicationModuleImpl.invokeMethod(OAApplicationModuleImpl.java(Compiled Code))
at oracle.apps.per.irc.offers.webui.OfferReviewCO.processFormRequest(OfferReviewCO.java:129)
...
## Detail 0 ##
java.io.FileNotFoundException: <directory path> (No such file or directory)
at java.io.FileOutputStream.open(Native Method)
at java.io.FileOutputStream.<init>(FileOutputStream.java(Compiled Code))
at java.io.FileOutputStream.<init>(FileOutputStream.java:153)
at oracle.apps.xdo.common.tmp.TmpFile.createTmpFileJDK118(TmpFile.java:146)
at oracle.apps.xdo.common.tmp.TmpFile.createTmpFile(TmpFile.java:113)
at oracle.apps.xdo.template.fo.util.FOUtility.generateFO(FOUtility.java:987)
at oracle.apps.xdo.template.fo.util.FOUtility.generateFO(FOUtility.java:212)
at oracle.apps.xdo.template.FOProcessor.createFO(FOProcessor.java:1657)
at oracle.apps.xdo.template.FOProcessor.generate(FOProcessor.java:967)
at oracle.apps.xdo.oa.schema.server.TemplateHelper.runProcessTemplate(TemplateHelper.java:5888)
at oracle.apps.xdo.oa.schema.server.TemplateHelper.processTemplate(TemplateHelper.java:3593)
at oracle.apps.per.irc.offers.server.OffersAMImpl.generateOfferLetter(OffersAMImpl.java:1013)

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. From Vacancy Search page, select applicant.
2. Create Offer: Enter Basic Details.
3. Warning: There is no reporting group defined with a purpose of iRecruitment for this business group.
4. Review page.
5. Click on View Offer Letter Button and error occurs.

Cause

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