D365 Purchase Order Cancellation Behavior is inconsistent – when it comes to cancelling purchase orders. When Purchase Orders are cancelled via the Cancel Button on the Ribbon (Purchase Order -> Maintain) the Purchase Order is only pushed to ‘Approved’ status. However, if a user cancels all lines via the Update Line -> Update Delivery Remainder -> Cancel Quantity then the Purchase Orders is auto-approved and auto-confirmed.

Currently line cancellations that lead to full cancellations of Purchase Orders are in confirmation status and customer could not generate a confirmation journal.