Cancel Orders: Decision Tree by Status

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When to use this workflow

• A customer calls to cancel an order before shipment
• A customer wants to cancel a shipped or delivered order (return instead of cancel)
• Internal team needs to void an erroneous order
• You need to understand the GL impact of cancellation at each stage

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Cancellation Decision Tree

Use this table to find the right cancellation path for your order status:

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How the current Cancel Order action behaves

• Cancel Order lives in the order action menu.
• If cancellation is blocked, the menu item stays visible but disabled. Hover it to see the reason and the suggested next step.
• If the order has captured money, Arcus opens the refund workflow first. After each refund completes, Arcus checks whether more money remains. When the paid amount reaches zero, the cancellation confirmation opens.
• The confirmation dialog shows what will happen automatically: labels voided when eligible, inventory released, GL reversed, AvaTax voided, Shopify cancellation when applicable, and whether non-Stripe payments still need manual refund handling.
• If your entity has a cancellation fee policy, the dialog can show a fee preview. Depending on policy and payment state, you may be able to override the amount or waive the fee before confirming.
• After cancellation, Arcus asks whether you want to go back to the orders list or stay on the cancelled order.

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Step-by-step cancellation by status

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Draft orders

Steps:

1. Open the draft order.
2. Click the menu (…) button at the top right.
3. Select Delete Order only when the order has no payments, no GL entries, and no inventory movement.
4. Type the order number if the delete confirmation asks for it.
5. Confirm the delete.

Expected result: The zero-history draft is removed. If you need an audit trail, use Cancel Order instead of delete.

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Confirmed orders (no allocation yet)

Steps:

1. Open the order.
2. Click Cancel Order in the order actions menu.
3. If the refund modal opens, complete the refund path first or stop and resolve payment handling with Accounting.
4. Review the cancellation dialog.
5. Review any cancellation fee preview, override, or waive option.
6. Enter the reason for cancellation.
7. Click Cancel Order.

Expected result: Order status changes to cancelled. Arcus releases eligible inventory, voids eligible labels, reverses posted effects, and records the reason. Side effects:

• Stripe-backed card or ACH payments can be refunded in the cancel/refund chain.
• Cash, check, wire, or external money may require manual refund handling. The cancellation dialog calls this out when it detects held non-Stripe money.
• If a cancellation fee invoice is issued, use the View Invoice action from the success toast when it appears.

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Allocated orders (inventory reserved)

Steps:

1. Open the order.
2. Review the order status, fulfillment status, package section, and line quantities.
3. Use the order actions menu and select Cancel Order.
4. Review the consequences in the cancellation dialog.
5. Enter the cancellation reason and confirm.
6. Send the customer a follow-up email if your team requires a manual cancellation notice.

Expected result: Allocated inventory is released back to Available. Order status changes to Canceled. GL reversals are recorded for any COGS reserve entries. GL impact:

• Original COGS entry is reversed (debit to COGS Expense, credit to Inventory Asset).
• Any tax reserve is reversed.

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Packed orders (pre-label)

Steps:

1. Open the order.
2. Decide whether you are stopping the order or editing it.
3. To stop the order, use Cancel Order from the order actions menu.
4. To change items before shipment, use Unpack and Edit instead, then make the edit and re-pack.

Expected result: Cancellation stops the order and reverses eligible operational history. Unpack and Edit returns the order to editable state without cancelling the sale. GL impact:

• COGS is reversed (inventory is no longer committed to the shipment).
• Shipping reserve is reversed if freight was pre-booked.

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Labeled orders (pre-ship, label not yet picked up by carrier)

Steps:

1. Open the order.
2. If the customer wants to change the order, use Unpack and Edit when available.
3. If the customer wants to stop the order, use Cancel Order.
4. If the label has entered carrier custody, do not rely on cancellation alone. Use carrier intercept or the return workflow.

Expected result: Eligible unshipped labels are voided, reversible packages are cancelled, and the order follows the selected cancellation or edit path. GL impact:

• Shipping expense is reversed.
• Any surcharges (oversize, overweight) are reversed.
• Void fee (charged by the carrier) is recorded as Shipping Expense.

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Shipped orders

Do not cancel shipped orders. Instead, use one of these paths:

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Path A: Intercept or reroute via carrier if available

• Available for some carriers (USPS, UPS, FedEx) within 24 hours of shipment.
• Contact the carrier with the tracking number and requested destination or return instructions.
• If successful, document the carrier outcome on the order.
• If unsuccessful, move to Path B.

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Path B: Request a return

• Open the order and click Request Return when the return action is available.
• Select the returned items and the closest reason, such as “No longer needed”, “Wrong item shipped”, or “Other”.
• Click Create Return.
• Send the customer return instructions or a return label using your team’s return workflow.
• Once the return is received and inspected, process the return or refund instead of using normal cancellation.

Expected result: Customer ships the order back. You receive it, inspect it, and complete the return or refund path once received. GL impact: GL reversal is recorded when the return is received and marked as Received in the system, not when the cancel button is clicked.

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Delivered orders

Do not cancel delivered orders. The order is complete from your perspective. If the customer wants to return items:

1. Open the delivered order.
2. Click Request Return when the action is available.
3. Select the returned items and the closest reason.
4. Click Create Return.
5. Send the customer a return label.
6. Once received and inspected, process the return.
7. The GL reversal is recorded on return receipt.

Timeline: Expect 5-14 business days for return receipt, plus 1-3 days for inspection and GL posting.

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Edge cases and common questions

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Can I cancel an order with serialized items?

Yes. When you cancel an order, serialized items are released back to your serial inventory as available. Ensure that serial numbers are re-recorded correctly if items were already allocated. Refer to Serial Numbers for details on serial tracking post-cancel.

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What if the order contains drop-shipped items?

Canceling an order with drop-ship items will also cancel the auto-generated purchase order to your supplier. You may need to contact the supplier to confirm the PO cancellation if it was already placed.

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What if I refund more than the customer paid?

You cannot issue a refund greater than the amount paid. The system enforces a cap on refund amounts per Refund Limits. If the customer is owed a credit, apply it to their account for use on a future order.

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What if two CS reps edit the same order at the same time?

The system uses optimistic locking. The first rep’s change is saved. The second rep’s browser will show a conflict warning. Refresh and re-apply your changes if needed. Refer to Order Exceptions for details.

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What if the customer has no email address on file?

You can still cancel the order, but the system will skip the automatic email notification. Manually contact the customer via phone or SMS to inform them of the cancellation.

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What if the order is on credit hold?

You can cancel a credit-held order without needing to release the hold first. The hold is automatically cleared when the order is canceled. No override authority is needed.

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