Cancellation of purchase order 44817, Northfield Joinery

Purchase order cancellation letter sent before dispatch

A purchase order cancellation letter names the order, cites the term that allows it to be cancelled and asks the supplier to confirm in writing. This one page letter from a joinery cancels a $5,340 plywood order before dispatch under its standard terms, and asks for confirmation that no invoice will follow.

Create a document with OneCraft1 A4 page, editable, then download as a PDF

The document, page by page

Every page as it renders and as it prints, with nothing summarised. Read the wording before you reuse it.

Northfield Joinery
12 Sawmill Lane, Northfield · purchasing@northfieldjoinery.example

Monday 14 September 2026
Accounts and Dispatch, Coastline Timber Supplies
By email to orders@coastlinetimber.example

Cancellation of purchase order 44817 dated 2 September 2026

Dear Coastline team, please cancel purchase order 44817 in full. The fit out it was ordered for has been postponed by our client until next year, so the plywood is no longer needed. Your dispatch notice of 10 September gives delivery as 21 September, so the goods have not left your yard.

Item
Qty
Unit price
Total
Marine plywood 2400 x 1200 x 18 mm, BS 1088
40
$96.00
$3,840.00
Marine plywood 2400 x 1200 x 12 mm, BS 1088
20
$75.00
$1,500.00
Order total, excluding tax
$5,340.00

The clause relied on. Clause 9 of our standard terms of purchase, which your acceptance of 3 September confirmed apply to this order, allows the buyer to cancel any order before dispatch without charge. The plywood is a stock item and has not been cut or treated for us.

Please confirm in writing by Friday 18 September that the order is cancelled and that no invoice will be raised for it. We expect to place an order of similar size for the same project when it restarts in February, and will come to you first.

For Northfield Joinery
Name
:
Ravi Chandran
Title
:
Purchasing Officer

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

Underline letterhead
The buyer's name, address and purchasing email.
Addressee and subject
The supplier's accounts and dispatch team and the order number and date.
Request and reason
Cancel in full, the postponed project and evidence the goods are not dispatched.
Order table
Both plywood lines with quantity, unit price and the order total.
The clause relied on
Clause 9 of the buyer's terms and why it applies to a stock item.
Confirmation and next order
A written confirmation date and the expected order in February.
Signature block
The purchasing officer's name and title.

When a supplier can charge for a cancelled order

The answer turns on two things: the contract terms and how far the order has progressed. Sale of goods law in common law countries, such as the Uniform Commercial Code in the United States and the Sale of Goods Act 1979 in the United Kingdom, treats an accepted order as a contract, and a buyer who refuses goods without a right to do so can be liable for the seller's loss. Costs rise in stages: an order not yet picked costs the supplier almost nothing, goods cut or made to order cannot be resold, and goods already shipped add freight both ways. A cancellation letter should state the stage the order is at.

Stages and likely charges

As a rule of thumb: before the order is picked, most suppliers waive any charge; once picked but not shipped, a small handling or restocking fee is common; once cut, treated or made to order, the buyer usually pays in full or for the work done; once shipped, the buyer pays freight and often a restocking fee to return it. Your own terms can shift these defaults, which is why this letter cites clause 9 and notes the plywood is a stock item that has not been cut or treated.

How to adapt this document

Replace the order number, date and lines with your own, copied from the purchase order rather than retyped. State the reason in one sentence; suppliers do not need detail. Check whose terms govern the order and cite the right clause, or if there is none, ask for the cancellation as a favour and offer to cover any costs already incurred. Change the confirmation date to two or three business days away. If you are cancelling part of an order, add columns for the quantity cancelled and the quantity still required.

What makes this document work

The order is identified beyond doubt

The subject line gives the order number and date, and the table repeats both lines with quantities, unit prices and the $5,340 total. The supplier's accounts and dispatch teams can find and stop the order without a phone call.

Timing is proved from the supplier's own notice

The letter quotes the supplier's dispatch notice of 10 September giving delivery on 21 September, so the goods have not left the yard. Cancelling before dispatch is the condition the clause relies on, and the evidence for it is the supplier's document.

The ask is a written zero

Instead of hoping no invoice arrives, the letter asks for written confirmation by 18 September that none will be raised, and offers the restarted project's order in February. A confirmation on file closes the matter for both sets of accounts.

Questions people ask

Can I cancel a purchase order after it has been accepted?

Once a supplier accepts a purchase order there is usually a contract, so cancelling is only free if the terms allow it or the supplier agrees. Many buyers' standard terms permit cancellation before dispatch; many suppliers' terms charge for it. Check whose terms apply to the order, usually the last set sent and accepted, and cite the clause in your letter.

Does a supplier have to accept a cancellation?

Not unless the contract gives the buyer a right to cancel. Without such a right, a cancellation is a request, and the supplier may hold the buyer to the order or claim its losses. In practice most suppliers agree for stock items not yet shipped, especially when a future order is offered, which is why the tone of the letter matters.

Can a supplier charge a cancellation fee?

Yes, if the contract says so or if the supplier has already incurred costs, such as custom manufacture, cutting to size, special freight or goods already shipped. A restocking fee of a stated percentage is common for returns. For stock items cancelled before dispatch under a buyer's no charge clause, as here, a fee is hard to justify.

Should I cancel a purchase order by phone or in writing?

Phone first if dispatch is close, because a call can stop a truck, then confirm in writing the same day. The letter is what accounts and auditors rely on, and it fixes the time of cancellation, which matters if the clause depends on dispatch. Ask for written confirmation in return, not just a verbal okay.

What if only part of the order needs to be cancelled?

Say exactly which lines and quantities are cancelled and which remain, and ask the supplier to issue a revised order acknowledgement. Show the reduced total. Partial cancellations are where most invoicing errors happen, so a table with the original, cancelled and remaining quantities avoids a dispute later.

Build your own in about a minute

The button below opens the generator with this use case already described. Change the wording to match your own, generate, then edit anything you like.

Make one like this

Other document examples

Letter of indemnity for delivering cargo without the bill of lading

A letter of indemnity lets a carrier release cargo without the original bill of lading in return for the requesting party's promise to cover any loss that follows. This two page letter from a grain exporter asks a shipowner to deliver 3,000 tonnes of barley to a named receiver while the original bill is still in the bank chain.

Discount request letter offering volume and faster payment

A discount request letter asks a supplier for a specific price and offers something back, such as more volume, a longer commitment or faster payment. This one page letter from a four cafe group asks its coffee roaster for 8 percent off in return for a 3,600 kg commitment and 14 day payment.

Non conformance letter to a supplier with an 8D request

A non conformance letter tells a supplier exactly what failed against which requirement, and asks for containment and a root cause by a date. This one page letter from a pump maker records 38 of 400 impeller castings outside a bore tolerance of 0.05 mm, quarantines them and asks for an 8D report in 10 working days.

Want the steps in the builder? Read Write the letter from a description, then Add the order table. For everything this generator can do, see the document maker.

Sources

Written and checked by the OneCraft team. Last checked .