Can I cancel a Purchase Order, and what happens if I cancel?

Yes, you can cancel a purchase order and the Status is changed to Cancelled.
When a PO is canceled:

• It’s marked as inactive – You can no longer create Receipt Notes or Bills linked to that PO.
• Inventory is not updated – No stock movement occurs since the goods are not received.
• Linked transactions stop – Any pending vendor shipments or billing processes associated with the PO will not proceed.
• Reports reflect the change – The PO will appear as Cancelled in reports and dashboards, helping maintain accurate purchase and financial records.
• Audit trail is preserved – The history and details of the canceled PO remain in the system for reference and compliance.

To learn more about Purchase Order, click here.