diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index 68361b199a6f..5076e834fb30 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -30,7 +30,9 @@ jobs:
           php artisan optimize
           php artisan storage:link
           sudo php artisan cache:clear
-
+          sudo find ./ -type f -exec chmod 644 {} \;
+          sudo find ./ -type d -exec chmod 755 {} \;
+          
       - name: Prepare JS/CSS assets
         run: |
           npm i
diff --git a/app/Http/Controllers/InvoiceController.php b/app/Http/Controllers/InvoiceController.php
index 558e3525a07f..f23589f2a5c9 100644
--- a/app/Http/Controllers/InvoiceController.php
+++ b/app/Http/Controllers/InvoiceController.php
@@ -677,6 +677,11 @@ class InvoiceController extends BaseController
                 }
                 break;
             case 'cancel':
+                $invoice = $invoice->service()->handleCancellation()->save();
+
+                    if(!$bulk){
+                        $this->itemResponse($invoice);
+                    }
                 break;
             case 'reverse':
                 $invoice = $invoice->service()->handleReversal()->save();
diff --git a/app/Services/Invoice/HandleCancellation.php b/app/Services/Invoice/HandleCancellation.php
new file mode 100644
index 000000000000..54be067f9085
--- /dev/null
+++ b/app/Services/Invoice/HandleCancellation.php
@@ -0,0 +1,59 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com)
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2020. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://opensource.org/licenses/AAL
+ */
+
+namespace App\Services\Invoice;
+
+use App\Events\Payment\PaymentWasCreated;
+use App\Factory\CreditFactory;
+use App\Factory\InvoiceItemFactory;
+use App\Factory\PaymentFactory;
+use App\Helpers\Invoice\InvoiceSum;
+use App\Models\Client;
+use App\Models\Invoice;
+use App\Models\Payment;
+use App\Models\Paymentable;
+use App\Services\AbstractService;
+use App\Services\Client\ClientService;
+use App\Services\Payment\PaymentService;
+use App\Utils\Traits\GeneratesCounter;
+
+class HandleCancellation extends AbstractService
+{
+    use GeneratesCounter;
+
+    private $invoice;
+
+    public function __construct(Invoice $invoice)
+    {        
+        $this->invoice = $invoice;
+    }
+
+    public function run()
+    {
+        /* Check again!! */
+        if(!$this->invoice->invoiceCancellable($this->invoice))
+            return $this->invoice;
+
+        $adjustment = $this->invoice->balance*-1;
+        //set invoice balance to 0
+        $this->invoice->ledger()->updateInvoiceBalance($adjustment, "Invoice cancellation");
+
+        $this->invoice->balance = 0;
+        $this->invoice = $this->invoice->service()->setStatus(Invoice::STATUS_CANCELLED)->save();
+
+        //adjust client balance
+        $this->invoice->client->service()->updateBalance($adjustment)->save();
+    
+        return $this->invoice;
+    }
+
+}
+
diff --git a/app/Services/Invoice/HandleReversal.php b/app/Services/Invoice/HandleReversal.php
index 8a45c13b4269..facf974fa41f 100644
--- a/app/Services/Invoice/HandleReversal.php
+++ b/app/Services/Invoice/HandleReversal.php
@@ -90,7 +90,7 @@ class HandleReversal extends AbstractService
             $credit->service()->markSent()->save();
         }
         /* Set invoice balance to 0 */
-        $this->invoice->ledger()->updateInvoiceBalance($balance_remaining, $notes)->save();
+        $this->invoice->ledger()->updateInvoiceBalance($balance_remaining*-1, $notes)->save();
 
         $this->invoice->balance= 0; 
 
diff --git a/app/Services/Invoice/InvoiceService.php b/app/Services/Invoice/InvoiceService.php
index 4730ae379000..9a5037d0ba37 100644
--- a/app/Services/Invoice/InvoiceService.php
+++ b/app/Services/Invoice/InvoiceService.php
@@ -18,6 +18,7 @@ use App\Services\Invoice\ApplyNumber;
 use App\Services\Invoice\ApplyPayment;
 use App\Services\Invoice\CreateInvitations;
 use App\Services\Invoice\GetInvoicePdf;
+use App\Services\Invoice\HandleCancellation;
 use App\Services\Invoice\HandleReversal;
 use App\Services\Invoice\MarkInvoicePaid;
 use App\Services\Invoice\MarkSent;
@@ -123,6 +124,14 @@ class InvoiceService
         return $this;
     }
 
+    public function handleCancellation()
+    {
+        $this->invoice = (new HandleCancellation($this->invoice))->run();
+
+        return $this;
+    }
+
+
     public function markViewed()
     {
         $this->invoice->last_viewed = Carbon::now()->format('Y-m-d H:i');
diff --git a/app/Utils/Traits/Invoice/ActionsInvoice.php b/app/Utils/Traits/Invoice/ActionsInvoice.php
index e9d3efaec6a9..fa6b61417c02 100644
--- a/app/Utils/Traits/Invoice/ActionsInvoice.php
+++ b/app/Utils/Traits/Invoice/ActionsInvoice.php
@@ -28,7 +28,7 @@ trait ActionsInvoice
     public function invoiceCancellable($invoice) :bool
     {
 
-		if($invoice->status_id == Invoice::STATUS_PARTIAL && $invoice->is_deleted == false && $invoice->deleted_at == NULL)
+		if(($invoice->status_id == Invoice::STATUS_SENT || $invoice->status_id == Invoice::STATUS_PARTIAL) && $invoice->is_deleted == false && $invoice->deleted_at == NULL)
 			return true;
 
 		return false;
diff --git a/tests/Feature/CancelInvoiceTest.php b/tests/Feature/CancelInvoiceTest.php
new file mode 100644
index 000000000000..da9202ccd243
--- /dev/null
+++ b/tests/Feature/CancelInvoiceTest.php
@@ -0,0 +1,72 @@
+<?php
+
+namespace Tests\Feature;
+
+use App\Factory\CreditFactory;
+use App\Factory\InvoiceItemFactory;
+use App\Helpers\Invoice\InvoiceSum;
+use App\Listeners\Credit\CreateCreditInvitation;
+use App\Models\Client;
+use App\Models\Credit;
+use App\Models\Invoice;
+use App\Models\Payment;
+use App\Models\Paymentable;
+use App\Utils\Traits\MakesHash;
+use Illuminate\Database\Eloquent\Model;
+use Illuminate\Foundation\Testing\DatabaseTransactions;
+use Illuminate\Foundation\Testing\RefreshDatabase;
+use Illuminate\Foundation\Testing\WithFaker;
+use Illuminate\Routing\Middleware\ThrottleRequests;
+use Illuminate\Support\Carbon;
+use Illuminate\Validation\ValidationException;
+use Tests\MockAccountData;
+use Tests\TestCase;
+
+/**
+ * @test
+ * @covers App\Services\Invoice\HandleCancellation
+ */
+    
+class CancelInvoiceTest extends TestCase
+{
+    use MakesHash;
+    use DatabaseTransactions;
+    use MockAccountData;
+
+    public function setUp() :void
+    {
+        parent::setUp();
+
+        $this->withoutMiddleware(
+            ThrottleRequests::class
+        );
+
+        $this->faker = \Faker\Factory::create();
+
+        Model::reguard();
+
+        $this->makeTestData();
+
+        $this->withoutExceptionHandling();
+    }
+
+    public function testCancelInvoice()
+    {
+    	$this->assertTrue($this->invoice->invoiceCancellable($this->invoice));
+
+        $client_balance = $this->client->balance;
+        $invoice_balance = $this->invoice->balance;
+
+        $this->assertEquals(Invoice::STATUS_SENT, $this->invoice->status_id);
+
+        $this->invoice->service()->handleCancellation()->save();
+
+        $this->assertEquals(0, $this->invoice->balance);
+        $this->assertEquals($this->client->balance, ($client_balance - $invoice_balance));
+        $this->assertNotEquals($client_balance, $this->client->balance);
+        $this->assertEquals(Invoice::STATUS_CANCELLED, $this->invoice->status_id);
+
+    }
+}
+
+
diff --git a/tests/Unit/InvoiceActionsTest.php b/tests/Unit/InvoiceActionsTest.php
index 3969a3286f5f..e503bab5a210 100644
--- a/tests/Unit/InvoiceActionsTest.php
+++ b/tests/Unit/InvoiceActionsTest.php
@@ -29,7 +29,7 @@ class InvoiceActionsTest extends TestCase
     {
         $this->assertTrue($this->invoiceDeletable($this->invoice));
         $this->assertTrue($this->invoiceReversable($this->invoice));
-        $this->assertFalse($this->invoiceCancellable($this->invoice));
+        $this->assertTrue($this->invoiceCancellable($this->invoice));
     }
 
     public function testInvoiceIsReversable()