IntelliJ compile times "Java:system Java Compiler is not found in Classpath"

The problem is as follows:

Http://stackoverflow.com/questions/19889145/setting-up-intellij-12-idea-with-java-1-7-and-resolve-java-system-java-compile

1. IntelliJ CE downloaded and installed
2. Latest Java 1.7 downloaded and installed
3. JDK is setup to make and run the project

I faced the following strange error

Error: java: System Java Compiler was not found in classpath

The solution that fixed my problem is as follows:

In:

Project Settings > Compiler > Java Compiler

I changed the drop from Use compiler to Javac Eclipse !

Non of the other solutions I found on the web is helpful. Hope This helps your my unknown fellow reader.

Important:this had nothing to does with MY Java_home as IT is SET correctly.

IntelliJ compile times "Java:system Java Compiler is not found in Classpath"