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Shipment transaction can be cancelled once it is started. This transaction is performed by clicking the "Cancel Shipment Output" option located in the right click menu. The following points should be taken into consideration for cancelling shipment output.

1. Shipment slip status can be "Under Way" only. When the shipment output is cancelled, the shipment slip status will be Approved.
2. The return dispatch should not be issued for the shipment slip.
3. None of the shipment slip dispatches should be billed.

Once the "Cancel Shipment Output" option is clicked, a prompt message appears to inform the user that all dispatches related to the shipment transactions will be deleted. If user approves this message by clicking the OK button, all related dispatches are deleted. If the "OK" button is clicked to continue and shipment is not cancelled due to certain complications, user is warned that billed shipment transactions for which a dispatch is generated cannot be cancelled. 
This option also breaks the shipment relation between unplanned returns and the existing return slips. Shipment and order totals are updated again.