impact on stock numbers when a PO and SO are cancelled

impact on stock numbers when a PO and SO are cancelled

I had a customer cancel an order that I'd had to create a PO to fill.
  • create PO increases Qty Ordered
  • create SO increases Qty in demand
  • cancel PO has no impact on Qty Ordered - should decrease this number
  • cancel SO has no impact until it is converted then both Qty in Stock and Qty in Demand are decreased - should only decrease Qty in Demand
Am I following the correct steps to cancel both the PO and the SO?

Thank you