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If the customer cancels the insertion order prior to the Product Issue's Revenue Recognition Date, the insertion order is marked cancelled and generates a cancellation order with Order GL entries that reverse the original order's GL entries when it is saved. It also creates two scheduled transactions to reverse the original scheduled transactions to complete the cancellation. The first scheduled transaction is created with a creation date of the current date and a scheduled date of the current date. This scheduled transaction debits the deferred income account and credits the sales account. The transaction is necessary because it reverses the first scheduled transaction created in the original order.
The second scheduled transaction is created with a creation date of the current date and a scheduled date of the Revenue Recognition date. This transaction is an exact reversal of the second schedule transaction created from the original order. The transaction also completes the reversal cycle and creates a net zero effect of all general ledger accounts used for the original order.
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