What is 'cancellation document' in SAP SD - Sales and Distribution?

cancellation document - Overview

• Component: SD

• Component Name: Sales and Distribution

• Description: A document created to cancel a billing document. Data from the billing document is copied to the cancellation document. The system transfers an offsetting posting to accounting.

cancellation document - Details

• 
  Key Concepts: 
  A cancellation document is a document used in SAP Sales and Distribution (SD) to reverse a sales order or delivery. It is used to cancel an entire order or individual items within an order. The cancellation document can be created manually or automatically. 
  
  How to use it: 
  To create a cancellation document, go to the Sales Order menu in SAP SD and select the “Create Cancellation Document” option. You will then be prompted to enter the sales order number and the item numbers of the items you wish to cancel. Once you have entered this information, the cancellation document will be created. 
  
  Tips & Tricks: 
  When creating a cancellation document, it is important to ensure that all of the necessary information is entered correctly. This includes the sales order number, item numbers, and any other relevant information. Additionally, it is important to check that all of the items you wish to cancel are included in the cancellation document before submitting it. 
  
  Related Information: 
  For more information on creating and using cancellation documents in SAP SD, please refer to the SAP Help documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to create and use cancellation documents in SAP SD.