Production order and credit note

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Hi, it’s been awhile.

I have this situation with production order.
Our product is made to order. Once customer paid we will start the production.

One invoice has been issued in Jan 2025 and the customer paid 50% of the total amount invoiced. But 3 days after the invoice issued, the customer cancelled their order and luckily our production has not started yet. I have issued credit note to the invoice so we can return the money back to the customer.

So, my question is, in the production order of Manager, do we need to record the production order even though we have not use any of the inventory?

We in the middle of closing the Year End Account but could not settle with the untallied report of Inventory Quantity Summary.

Hope you guys can clarify this soonest.
Thanks

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You do not need to record production order as it didnt happen. Recording credit note was enough as that would increase Qty own which was initially decreased by the invoice you issued. Make sure Also act as delivery note is unchecked on both invoice and credit note.

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Thank you for your time responding to my question. Appreciate that. Thanks again