If a cancellation posting is necessary for the R/3 system, you need to cancel the posting in the system that initiated the transaction. If you entered a goods movement in the Inventory Management component first, then you should also post the cancellation in this component first.

If you want to cancel a goods movement in Inventory Management, you need to distinguish between the following situations:

• Is the cancellation quantity still in the interim storage area? or
• Has a transfer order been created already?

If the quantity concerned is still in the interim storage area, the following updates take place in Warehouse Management during the cancellation posting:

• The interim storage quant is adjusted by the cancellation quantity.
• The transfer requirement or the posting change notice is updated.

A cancellation posting which takes place before a transfer order has been created is illustrated below:

If the goods have already been transferred, the following updates take place in Warehouse Management:

• A new quant is posted to the interim storage area.
• A transfer requirement or a posting change notice is generated.

A cancellation posting which takes place after the creation of a transfer order is illustrated below:

For the cancellation posting, a transfer order with a reference to the transfer request or the posting change notice needs to be created.

It is also possible that a partial transfer takes place. In that case, it is a mixed process.