diff --git a/erpnext/accounts/doctype/pos_invoice/pos_invoice.py b/erpnext/accounts/doctype/pos_invoice/pos_invoice.py
index 58c14a2bc5df..b0c69be4a1c0 100644
--- a/erpnext/accounts/doctype/pos_invoice/pos_invoice.py
+++ b/erpnext/accounts/doctype/pos_invoice/pos_invoice.py
@@ -273,6 +273,8 @@ def on_cancel(self):
 			against_psi_doc.delete_loyalty_point_entry()
 			against_psi_doc.make_loyalty_point_entry()
 
+		self.db_set("status", "Cancelled")
+
 		if self.coupon_code:
 			from erpnext.accounts.doctype.pricing_rule.utils import update_coupon_code_count