A system is provided for facilitating residual-value management. During operation, the system stores in a computing system a total value, which corresponds to a total amount of goods or service. The system divides the total value into a number sub-values, and determining that a sub-value is less than or equal to a threshold. In response, the system merges the sub-value into a merged residual-value. Furthermore, the system receives a transaction that indicates a subtraction operation with an associated value. Subsequently, the system allows the merged residual-value to be considered for processing the subtraction operation, thereby reducing residual-value fragmentation.