Workflow error

Hello Everyone

I have a workflow has has an if condition.

If QuoteStatus equals [Draft]
  Then update Opportunity
    Update Opportunity ID
      Quoted Stage to Quoted   (note this is a look up field) 

This works great if we create a Quote from an Opportunity, but if we create a Quote from an Account we get an Business Process Error Cannot find record to be updated.

If I deactived the Workflow we're allowed to create the Quote from an Account

Here is the error code that points to the workflow

Unhandled Exception: System.ServiceModel.FaultException`1[[Microsoft.Xrm.Sdk.OrganizationServiceFault, Microsoft.Xrm.Sdk, Version=7.0.0.0, Culture=neutral, PublicKeyToken=31bf3856ad364e35]]: Cannot find record to be updatedDetail:
<OrganizationServiceFault xmlns:i="www.w3.org/.../XMLSchema-instance" xmlns="schemas.microsoft.com/.../Contracts">
  <ErrorCode>-2147220891</ErrorCode>
  <ErrorDetails xmlns:d2p1="schemas.datacontract.org/.../System.Collections.Generic">
    <KeyValuePairOfstringanyType>
      <d2p1:key>OperationStatus</d2p1:key>
      <d2p1:value xmlns:d4p1="www.w3.org/.../XMLSchema" i:type="d4p1:string">0</d2p1:value>
    </KeyValuePairOfstringanyType>
    <KeyValuePairOfstringanyType>
      <d2p1:key>SubErrorCode</d2p1:key>
      <d2p1:value xmlns:d4p1="www.w3.org/.../XMLSchema" i:type="d4p1:string">-2146233088</d2p1:value>
    </KeyValuePairOfstringanyType>
  </ErrorDetails>
  <Message>Cannot find record to be updated</Message>
  <Timestamp>2015-10-23T20:10:15.16122Z</Timestamp>
  <InnerFault i:nil="true" />
  <TraceText>

[Microsoft.Crm.ObjectModel: Microsoft.Crm.ObjectModel.SyncWorkflowExecutionPlugin]
[20e453ee-c179-e511-80ef-c4346bad135c: ]
Starting sync workflow 'Quoted Opportunity', Id: 18e453ee-c179-e511-80ef-c4346bad135c
Entering ConditionStep1_step:
Entering UpdateStep3_step:
Sync workflow 'Quoted Opportunity' terminated with error 'Cannot find record to be updated'

</TraceText>

I can I fix this any help would be great.