Sales order cancelled by customer with a deposit paid

Hi ConchiM 

Please follow the steps given: 

1. Reverse the invoice to create a credit note of the original transaction
   1. Ensure the Setup>>Preferences>>Security>>Transactions can't be changed they must be reversed is enabled.
   2. Navigate to the required invoice.
   3. Choose Edit>>Reverse Invoice.
   4. Record the Reversal.
2. Navigate to the Sales>>Sales Register>>Returns and Credits
   • Highlight the desired credit note, select Pay Refund and record the necessary Settle Return and Credits transaction for the amount of the refund. Ensure that the amount listed on the transaction is correct
   • Highlight the desired credit note, select Apply to Invoice and record the necessary Settle Return and Credits transaction allocating the desired amount to the outstanding invoice and another charge invoice.

What the above process will do is generate a credit note for the transaction and then allows for that credit to be allocated to the individual parts of the situation (original invoice, new invoice charge and the refund).