diff --git a/addons/purchase/__openerp__.py b/addons/purchase/__openerp__.py
index d52c84ceedf..827d2a4971e 100644
--- a/addons/purchase/__openerp__.py
+++ b/addons/purchase/__openerp__.py
@@ -65,8 +65,9 @@ Dashboard for purchase management that includes:
              'purchase_unit_test.xml',
              'test/procurement_buy.yml',
              'test/purchase_report.yml',
-             'test/purchase_order_merge.yml'
-    ],
+             'test/purchase_order_merge.yml',
+             'test/purchase_order_cancel_draft.yml'
+                 ],
     'demo': ['purchase_demo.xml'],
     'installable': True,
     'active': False,
diff --git a/addons/purchase/test/purchase_order_cancel_draft.yml b/addons/purchase/test/purchase_order_cancel_draft.yml
new file mode 100644
index 00000000000..b1c8b6ef938
--- /dev/null
+++ b/addons/purchase/test/purchase_order_cancel_draft.yml
@@ -0,0 +1,94 @@
+-
+  In order to test to Cancel purchase order from Approved State,I start by creating a new product 'Pen Drive1'
+-
+ !record {model: product.product, id: product_product_pendrive1}:
+    categ_id: 'product.product_category_3'
+    cost_method: standard
+    mes_type: fixed
+    name: Pen Drive
+    price_margin: 1.0
+    procure_method: make_to_order
+    property_stock_inventory: stock.location_inventory
+    property_stock_procurement: stock.location_procurement
+    property_stock_production: stock.location_production
+    seller_delay: '1'
+    standard_price: 500.0
+    supply_method: buy
+    type: product
+    uom_id: product.product_uom_unit
+    uom_po_id: product.product_uom_unit
+    volume: 0.0
+    warranty: 0.0
+    weight: 0.0
+    weight_net: 0.0
+-
+  In order to test the  purchase order flow,I create a new record where "invoice_method" is From Order.
+-
+  I create first purchase order for Pen Drive1.
+-
+  !record {model: purchase.order, id: purchase_order_pendrive1}:
+    company_id: base.main_company
+    date_order: !eval time.strftime('%Y-%m-%d')
+    invoice_method: order
+    location_id: stock.stock_location_stock
+    order_line:
+      - date_planned: !eval time.strftime('%Y-%m-%d')
+        name: Pen Drive
+        price_unit: 100.0
+        product_id: 'product_product_pendrive1'
+        product_qty: 10.0
+        product_uom: product.product_uom_unit
+        state: draft
+    partner_address_id: base.res_partner_address_7
+    partner_id: base.res_partner_4
+    pricelist_id: purchase.list0
+-
+  Initially  purchase order is in the draft state.
+-
+  !assert {model: purchase.order, id: purchase_order_pendrive1}:
+    - state == 'draft'
+-
+  I confirm the purchase order for Pen Drive1.
+-
+  !workflow {model: purchase.order, action: purchase_confirm, ref: purchase_order_pendrive1}
+-
+  I check that the order which was initially in the draft state has transmit to confirm state.
+-
+  !assert {model: purchase.order, id: purchase_order_pendrive1}:
+    - state == 'approved'
+-
+  I have to first cancel Picking of Approved Perchase order .
+-
+  !python {model: stock.picking}: |
+    from tools.translate import _
+    pur_ord=self.pool.get( 'purchase.order')
+    name = pur_ord.browse(cr, uid, ref("purchase_order_pendrive1")).name
+    search_ids=self.search(cr, uid, [('origin', '=', name) ])
+    self.action_cancel(cr, uid, search_ids)
+-
+  Now I have to cancel confirm  purchase order for Pen Drive1.
+-
+  !python {model: purchase.order}: |
+    from tools.translate import _
+    ids = []
+    ids.append(ref("purchase_order_pendrive1"))
+    self.action_cancel(cr, uid, ids)
+-
+  I check that the order which was in approved state has transmit to cancel state.
+-
+  !assert {model: purchase.order, id: purchase_order_pendrive1}:
+    - state == 'cancel'
+-
+  Now again set purchase order for Pen Drive1 to draft state.
+-
+  !python {model: purchase.order}: |
+    from tools.translate import _
+    ids = []
+    ids.append(ref("purchase_order_pendrive1"))
+    self.action_cancel_draft(cr, uid, ids)   
+-
+  I check that the order which was in cancel state has transmit to draft state.
+-
+  !assert {model: purchase.order, id: purchase_order_pendrive1}:
+    - state == 'draft'
+ 
\ No newline at end of file