Magento 2 store management is a constant flow of customers, orders, shipments, restocking, and other important backend and frontend tasks. Customers and orders are always at the center of it.

As you process orders in Magento 2, you come to know how to create invoices, shipments and manage customers' order requests. However, sometimes you have to cancel order in Magento 2 if case customers placed them by mistake or just want to return the items. And that's what you're going to learn more about.

There are two options for how you can cancel order in Magento: from the order grid or order views page.

To Cancel Order in Magento 2:

1. Go to Sales > Orders.

2. Check the Orders you want to cancel.

Pending Order Magento 2

3. Select a corresponding option from the mass action dropdown and confirm the action.

Cancel Order in Magento 2

It is as simple as that.

If you want to cancel an order from the order views page you have to take one more step.

4. Go to the order your want to cancel and press the Cancel button from the top bar.

How to Cancel Order in Magento 2

Notice something similar in both cases?

It is important to know that you can only cancel orders that weren't invoiced or shipped. Correspondingly you can only cancel orders with Pending status. That's how Magento order statuses work.

As you can see orders with Processing or any other status can't be canceled.

Order View Page Magento

However, there is a way around this. You can change order status in Magento with the help of an extension that changes both order status and state.

Magento 2 Credit Memo

If you cancel orders that have been already paid for, you need to create a credit memo (refund) — a document that authorizes the return of the funds to the customer.

Magento 2 invoice page

And here is when it gets confusing.

There are two types of refunds you can create in Magento — online and offline which depend on the payment method used when an order was placed.

We already have a step-by-step guide on how to refund order in Magento. Just follow the link to get detailed instructions on how to manage credit memos easily.