diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.js b/erpnext/accounts/doctype/payment_entry/payment_entry.js
index 936c538e20..830a7f25c0 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.js
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.js
@@ -801,14 +801,11 @@ frappe.ui.form.on('Payment Entry', {
 				row.allocated_amount = 0;
 
 			} else if (frappe.flags.allocate_payment_amount != 0 && (!row.allocated_amount || paid_amount_change)) {
-				if (row.outstanding_amount > 0 && allocated_positive_outstanding > 0) {
+				if (row.outstanding_amount > 0 && allocated_positive_outstanding >= 0) {
 					row.allocated_amount = (row.outstanding_amount >= allocated_positive_outstanding) ?
 						allocated_positive_outstanding : row.outstanding_amount;
 					allocated_positive_outstanding -= flt(row.allocated_amount);
 
-				} else if (row.outstanding_amount > 0 && allocated_positive_outstanding == 0) {
-					row.allocated_amount = null;
-
 				} else if (row.outstanding_amount < 0 && allocated_negative_outstanding) {
 					row.allocated_amount = (Math.abs(row.outstanding_amount) >= allocated_negative_outstanding) ?
 						-1*allocated_negative_outstanding : row.outstanding_amount;