You can't overapply this transaction. (AR-855287)" Even outstanding balance is greater than receipt

Steps to replicate the error:
1. Go to receipt amounting to Php 1,943.32
2. Click Add open Receivable
3. Choose the invoice with outstanding balance of Php 2,376.97
4. Click done
5. An error will prompt:
"You can't overapply this transaction. (AR-855287)"
The transaction type assigned to the transaction doesn't allow overapplication. You can only apply a credit or receipt amount up to, but not over, the outstanding balance on the transaction."

In Manage Adjustment for Invoice 83031, the invoice has no adjustment pending for approval. No adjustment were created before.