Lockbox-Failing to create unapplied receipts

 Hello,

While using the lockbox, I was testing a receipt with 2 invoices to be applied.One of the invoice number was valid and the other was invalid. I changed the Lockbox defintion to the following:

In the Transactions tab, in the Invalid transaction Number handling field, The Post Partial Amount as Unapplied is Checked.

But when I am running the lockbox file, I still get the message that "ERROR Receipt has invalid applications". I was expecting one invoice to be applied and the remaining amount as Unapplied.

Not sure if there are any other setups involved?

Thanks.