To cancel an unshipped order:
- Navigate to Shipping Orders -> Unshipped Orders.
- Click Actions right hand side of the shipping order > Cancel.
- This will cancel the shipping order and move the sales order back to Sales Orders -> Paid - Ready to Ship.
To cancel the sales order:
- Select the checkbox for that order on the Paid - Ready to Ship section click Bulk actions> Mark as Canceled or click Actions to the right of your order, then click cancel.
- This will change the status of the order from Paid to Cancelled.