Steps to Create or Customize an Email Notification when an Order is Cancelled

I. Disable the standard cancellation email notification
1. Navigate to Setup > Accounting > Accounting Preferences > Order Management
2. Set value Send Email Confirmation when Sales Order Canceled = F
3. Click on Save

II. Create Workflow to set values
1. Navigate to Customization > Scripting > Workflows > New
2. Provide Name
3. Set value for :
- Record Type : Transaction
- Sub Type : Sales Order
4. Set On Update = T
5. Set Condition : Status Sales Order : Cancelled
6. Set Execute as Admin = T
7. Set Release Status = Testing/Released
8. Click on Save

III. Create new State
1. Click on New State
2. Provide Name
3. Click on Save.

IV. Steps to Create Action
1. Click on the State
2. Click on New Action
3. Click Send Email
4. Set Trigger On After Record Submit
5. Set Condition : Status Sales Order : Cancelled
6. Set Sender
7. Set recipient
- Select From Field
- Select Current Record
- Set : Field = Email
8. Add Message
9. Click on Save


Notes: Only unapproved sales orders can be cancelled.
Workaround for Enhancement 167950.