Setup could not find Domain 'XXXXX' for Application Object Server(AOS) account

Error "Setup could not find Domain 'XXXXX' for Application Object Server(AOS) account".

Recently i faced this error while installing Dynamics AX 2012. I was trying to use the domain account for AOS. But the setup is not allowing me to proceed further and showing the error "Setup could not find Domain 'XXXXX' for Application Object Server (AOS) account".

This error id due to, the user name is not existing in the users in server manager.

To resolve this issue follow the below steps.

1) Open Server Manager
2) Expand Configuration.
3) Expand local users and groups.
4) Right click on users and click on New User.
5) Enter the valid user name that are exiting under the domain.
6) Enter the full name and click on Ok.

Now  you will be able to proceed further...