There are 4 options to cancel orders - each with slightly different results.
You can cancel an order in any status, although please note - if the orders are in "invoiced" status, all picking & shipping charge's will still get applied to the client.
To cancel an order, or selection of orders navigate to Orders > Overview
Then select one of the cancel options from the order action drop down:
The first option is to "Cancel" the order.
Selecting this option will automatically unallocate stock from the order - making it available again.
Cancel - No Stock
The second option "Cancel - No Stock" will cancel the order, but it assumes you are cancelling because you do not have sufficient stock available, and so it will create a neutral stock movement, with the effect of not adding the stock back.
Cancel - Charge for Picking
The third option "Cancel - Charge for Picking" will automatically unallocate the stock - but still charge for the picking costs, if you have already picked & packed the order.
Cancel & Refund
The fourth option "Cancel & Refund" will automatically unallocate stock - but will also take you through a link to refund the order, only if the payment was taken via our integration with sagepay for mail-order module
Cancel Courier Label
Cancelling the order will not automatically cancel any courier labels associated to it - you'll need to do this separately using the Cancel Courier Label Action: