Resolved Error Message: "You cannot apply more than your total payments, credits, and deposits."

The error is thrown because the amount onthe credit memo(under Items subtab) isless than the amount being applied to the transaction (under Apply subtab).

User can try either of the following:

a) Uncheck and re-check the apply box (this will lower the Applied amount of payment on the invoice)
    Or
b) First put in the payment amount then click the apply box next to the invoice.
   Or
c) Add another source of payment (seems like credits are available to be applied) to bring the total payment up to the correct Payment Amount