This Version of the Application Is Not Configured for Billing Through Google Play

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

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.

android in-app this version of application is not configer for billing through Google play

If you are install unsigned apk on android device then this "This version of the application is not configured for billing through Google Play" error is displaying so First uninstall old app from device and re-install new signed apk on device, it will solve your problem.

And See below link for more information.

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

Application not configured for billing through Google Play

There are a few things to consider here:

1. After uploading your apk to Google Play, you need to wait a while
   for Google's servers to update (similar to when you publish an
   update). This can take an hour or two or longer in my experience. So
   try again in a few hours.

2. Ensure that the version of the apk you uploaded is configured for
   IAP (through the permissions), and then only test IAP with a signed
   apk. That is, export and sign your apk from Eclipse and then install
   locally onto your device. Otherwise, if you run an unsigned version
   of the application directly from the IDE, it will not work and
   you'll see an error.

   Note: You don't need to upload a new apk every time you make minor changes, as long as the currently uploaded draft apk was configured with the correct permissions and you published your IAP items on the dev console. The only annoying part is that you have to export and sign your application each time after making changes and run it on a device locally.

3. Check that the versionCode of your uploaded apk has the same
   versionCode as your local version of the apk.

4. You can not use your developer account to make test purchases,
   because Google Wallet doesn't allow you to purchase items from
   yourself. So you need to set up some test accounts on the Developer
   Console and try purchasing items from a device running the test
   account.

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

If you're seeing "updates pending", I am assuming your app or in app products are still not published.

Check if app is in published status under "All Applications" that comes when you click the Android icon on the left on Google Play developer console.

Uploading APK to alpha doesn't make it published. You must fill out the 'Store Listing' and 'Pricing & Distribution' pages.

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