How can I clear the Work in Process balance for a cancelled work order?

In the case of a cancelled work order, no accounting entries are created for Work Order Cancel. If the cancelled work order has any product completions, then the Work in Process balances are used to cost the product completions. However, if there are no product completions, then the Work in Process balances are expensed. You need to mark the work order as Close for this accounting to take place.