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How to process customer deductions in Oracle AR?

Hi, 

Client recently moved to Oracle, and is looking for a way to  record customer deductions. Here are the scenario details. 

1) Say, a customer has 6 invoices $100 each. 
2) Out of 6 invoices, say 1 invoice is already closed in previous month, but another invoice was sent to customer again by mistake. customer will take a deduction for it. 
3)Meaning, when the customer sends payment, he would send only $500 and write that it should be applied to 6 invoices and state that for one invoice he is taking a deduction. 
4) So, Receipt should close 6 invoices while the money is only available for 5 invoices. 

Please advice, how to handle this scenario. 

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