How to place a Cancellation order
I am refering to bookshelf : Siebel Order Management Guide Version 8.1, for cancel order functionality.
Canceling an Order
If an order header status is Booked or Awaiting Shipping, then a customer service representative or sales agent can cancel the order. Orders cannot be canceled when the order header status is Shipped, Fulfilled, or Closed.
NOTE: Do not cancel an order by setting the order Status field to Canceled.
To cancel an order
1 Navigate to the order that you want to cancel.
2 Revise the order, which creates a new version of the order.
3 Choose a cancellation reason from the Cancel Reason list.