This version of the application is not configured for billing through Google Play

When I try to run my application with in-app billing I am getting the error: "This version of the application is not configured for billing through Google Play. Check the help center for more information".

I have the billing permission already in the Manifest file and I have a signed .apk uploaded as a draft onto Google Play and I have also installed that same signed apk onto my phone.

Any help on how to solve this issue?

Ahh found the solution after trying for a couple of hours.

1. Google takes a while to process applications and update them to their servers, for me it takes about half a day. So after saving the apk as a draft on Google Play, you must wait a few hours before the in-app products will respond normally and allow for regular purchases.
2. Export and sign APK. Unsigned APK trying to make purchases will get error.