CPanel: Can't add addon domain to the account

Symptom: When trying to add addon domain the following error message is displayed:

Sorry, the domain is already pointed to an IP address that does not appear to use DNS servers associated with this server. Please transfer the domain to this servers nameservers or have your administrator add one of its nameservers to /etc/ips.remotedns and make the proper A entries on that remote nameserver.

To resolve this issue:
  1. Login to WHM as root
  2. Go to Server Configuration -> Tweak Settings
  3. Select "Domains" Tab
  4. "Allow Remote Domains" set "On"
  5. Click "Save" at the bottom of the page
Try adding the addon domain again. The issue should be resolved.
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