Issue with application of Credit Memo

Hello Experts,

We are encountering an issue in Accounts Receivable where a credit note of $44 was created, and an adjustment of $28.05 was made, bringing the total due to $72.05. However, when attempting to apply the credit note to the bill, the system only allows $44 to be applied instead of the full $72.05 and displays an overapplication error while applying $72,05. Due to business requirements, we are unable to enable the "Allow Overapplication" checkbox in Manage Transaction Type.

Could you please advise on how this situation can be resolved without enabling the overapplication checkbox? Additionally, we would appreciate any insights into the system's behavior in this scenario.