Cancel shipments

Prerequisite to cancel shipments

1. Go to window Sales order preferences (SO101000), section Shipment settings.
2. Check the box Update the warehouse automatically when shipment is confirmed
3. Check the box Enable shipment cancellation.

Result: You have enabled the option to cancel shipments.

Cancel a shipment

1. Go to window Shipments (SO302000).
2. Select the shipment you want to cancel. Ensure Status is Confirmed
3. Click the button Action at the top of the window.
4. Select Cancel shipment.

Result: Your shipment transaction is cancelled.

Confirm the cancellation

1. Stay in window Shipments (SO302000).
2. Go to tab Orders, column Inventory correction ref.no.

Results

• A new Inventory correction ref.no. for the issue is created.
• The cancellation issue is displayed in the window Issues (IN302000) with Trans. type equals Return.
• Cancelling a shipment has the same effect on the FIFO calculations as creating a receipt. This means the item(s) will be placed as the last bought item(s) and with the same value as they had when creating the shipment.
• In the cancellation issue, under the tab Financial details, you will find the link to window Journal transactions (GL301000). By cancelling a shipment, a record for the reverse of the cost of goods sold is created in the General ledger.
• You can see the shipment in the window Sales orders (SO301000), tab Shipments, now with Status equals Cancelled.