We are in a business where the product is assemble to customer specification, but we don't necessarily hold the customer to take the order, since it is easy to rework the existing product for a different customer.
Based on the type of product, we have to either follow a static procedure (1-to-1 relationship between the sales order line & Production order) or Dynamic procedure (not necessarily 1-to-1 relationship) to create procurement element (Production order).
If a customer cancels at the early stages of the order processing, no problem. But if the customer cancels the order after some postings has happened against the production order, it causes trouble in Static processing (dynamic process is less troublesome).
The system does not let you cancel the sales order line because the prod. order is still attached to the line. While, it is not possible to delete the order because there is a order balance. This is due to either a goods movement, or confirmation that has already happened. In some case, the whole order is completed by the time customer cancels the order.
So far, we have been settling the order (& make the order balance zero), so that the system allows us to cancel the sales order. I would like to know if this is the right way to act in such scenario. Is there is another way to handle this or any other thing, that we need to pay attention to?.
Appreciate your response(s).