diff --git a/addons/stock/stock.py b/addons/stock/stock.py
index 30bd70b9728..2d3acaae0e7 100644
--- a/addons/stock/stock.py
+++ b/addons/stock/stock.py
@@ -761,6 +761,15 @@ class stock_picking(osv.osv):
             self.pool.get('stock.move').force_assign(cr, uid, move_ids)
             wf_service.trg_write(uid, 'stock.picking', pick.id, cr)
         return True
+    
+    def button_cancel(self, cr, uid, ids, *args):
+        """ Changes state of picking to cancel.
+        @return: True
+        """
+        wf_service = netsvc.LocalService("workflow")
+        for pick in self.browse(cr, uid, ids):
+            wf_service.trg_validate(uid, 'stock.picking', pick.id, 'button_cancel', cr)
+        return True
 
     def draft_force_assign(self, cr, uid, ids, *args):
         """ Confirms picking directly from draft state.
@@ -1141,7 +1150,7 @@ class stock_picking(osv.osv):
             for move in pick.move_lines:
                 if move.state not in ('cancel','done'):
                     return False
-                if move.state=='done':
+                if move.state=='done' and not move.scrapped:
                     ok = True
         return ok
 
@@ -1160,7 +1169,7 @@ class stock_picking(osv.osv):
             if not pick.move_lines:
                 return True
             for move in pick.move_lines:
-                if move.state == 'done':
+                if move.state == 'done' and not move.scrapped:
                     raise osv.except_osv(_('Error!'), _('You cannot cancel picking because stock move is in done state!'))
         return True
     def unlink(self, cr, uid, ids, context=None):
diff --git a/addons/stock/stock_view.xml b/addons/stock/stock_view.xml
index 83fed186f42..411c57aeede 100644
--- a/addons/stock/stock_view.xml
+++ b/addons/stock/stock_view.xml
@@ -754,7 +754,7 @@
                         <button name="action_process" states="assigned" string="Confirm &amp; Transfer" groups="stock.group_stock_user" type="object" class="oe_highlight"/>
                         <button name="%(action_stock_invoice_onshipping)d" string="Create Invoice/Refund"  attrs="{'invisible': ['|','|',('state','&lt;&gt;','done'),('invoice_state','=','invoiced'),('invoice_state','=','none')]}"  type="action" class="oe_highlight"/>
                         <button name="%(act_stock_return_picking)d" string="Reverse Transfer" states="done" type="action"/>
-                        <button name="button_cancel" states="assigned,confirmed,draft" string="_Cancel"/>
+                        <button name="button_cancel" type="object" states="assigned,confirmed,draft" string="_Cancel"/>
                     </span>
                     <field name="state" widget="statusbar" statusbar_visible="draft,assigned,done" statusbar_colors='{"shipping_except":"red","invoice_except":"red","waiting_date":"blue"}'/>
                 </header>