Application of Negative AR Invoice to Positive Invoice in AR R12

Hello

We have a scenario where previous year AR Invoice with Class as Invoice -which is over applied during Receipt Application and this has resulted in negative amount to this Invoice.

We have Created a AR Invoice Class to apply to this Negative Invoice.

But when we try to apply this Negative Invoice to the Positive Class Invoice the Action>>Application button is greyed out.

Does this mean that we cannot Apply Positive Invoice against AR Negative Invoice class?

Or we can apply only Credit Memos to Invoices?

Rgds

Raju