diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.js b/erpnext/accounts/doctype/payment_entry/payment_entry.js
index 17ac1f70567..52d8a2d5ceb 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.js
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.js
@@ -648,13 +648,13 @@ frappe.ui.form.on('Payment Entry', {
 
 	set_difference_amount: function(frm) {
 		var unallocated_amount = 0;
+		var total_deductions = frappe.utils.sum($.map(frm.doc.deductions || [],
+			function(d) { return flt(d.amount) }));
+
 		if(frm.doc.party) {
 			var party_amount = frm.doc.payment_type=="Receive" ?
 				frm.doc.paid_amount : frm.doc.received_amount;
 
-			var total_deductions = frappe.utils.sum($.map(frm.doc.deductions || [],
-				function(d) { return flt(d.amount) }));
-
 			if(frm.doc.total_allocated_amount < party_amount) {
 				if(frm.doc.payment_type == "Receive") {
 					unallocated_amount = party_amount - (frm.doc.total_allocated_amount - total_deductions);