102 movement not cancelling the 101 Unconfirmed Transfer Order

Hello,

When user create a GR with 101 movement against PO system creates a Transfer requirement which gets automatically converted to transfer order as per configuration.

Immediately after making the GR user realized that he has made a mistake and needs to cancel the GR. So for this He will use Cancel Material document  option and with102 movement type he creates another material document. This again creates a TR,TO and confirms it immediately.

But this 102 is not cancelling the Unconfirmed TO created by 101. Can you please help understand what is the setting required so that the 102 movement should automatically cancel the unconfirmed TO created by 101 movement.

Thanks in advance for your help.

Rgds,

AK