Issue -- Receipt Application error- The applied amount cannot be greater than the receipt amount

Issue: The applied amount cannot be greater than the receipt amount. (AR-856046)

Analysis:

As per existing setup and oracle functionality, a transaction cannot be applied to the receipt in case it results in overapplication.

For ex: A receipt with Unapplied Amount balance of 100 EUR cannot have application of a transaction with applied amount greater than 100 EUR.

As a workaround either you have to unapply some other transactions form this receipt so that receipt get unapplied amount balance or better if you can create another receipt for the remaining transactions.

As this error is due to AR Transaction type setup as you have enabled “Natural application only” options. 

You may apply receipt more than the invoice amount, You have option to choose “over application” check box if your business supports. First check AR Invoice > Detail button for all the adjustments / credits against this invoice and amend as per it.

Natural Application Only	Restrict the direction in which invoices, debit memos, deposits, guarantees, credit memos, and on-account credits can be updated by applications entered against them. Natural application does not apply to adjustments and chargebacks. If Natural Application Only is selected, clear the Allow Overapplication check box
Allow Over application	Allow items to be overapplied. Check box defaults to cleared for guarantees and deposits. If this check box is selected, clear Natural Application Only check box. In other words, activities against this transaction can cause the sign of the balance to change Example: an original positive amount ($150), can change to negative amount (-$50) due to receipt applications