Some common reasons for your recipe failing at this step are:
1) Duplicated same-level code
Concur does not allow codes to be duplicated at the same level, hence jobs that attempt to give a list item a code that already exists at that same level will fail.
2) Invalid parent codes
If you are creating a Level 2 list item, you have to provide a valid Level 1 code that corresponds to the parent of the Level 2 list item you wish to create (for example, a Level 1 code corresponding to an existing client will need to be provided when you wish to create a Level 2 code corresponding to projects under that client).
If the Level 1 code specified in your recipe does not exist, you will have to either manually create the list item, or run a recipe that syncs your higher-level (parent list items, i.e. Level 1) list items across your apps before running the recipe that syncs your lower-level (child list items, i.e. Level 2) list items.