This field determines how the system handles unshipped quantities.
No: Any remaining unshipped quantity remains open on backorder. This quantity can be shipped at some future time.
Yes: The quantity remaining is cancelled and is not received later; the quantity required is set to zero and MRP is notified of the decreased requirement.
Typically, Cancel B/O is set to Yes when only a trivial quantity remains to be shipped. For example, 10,120 items ship on an order for 10,124.