diff --git a/addons/stock/stock.py b/addons/stock/stock.py
index 88924105c16..42eeb615f84 100644
--- a/addons/stock/stock.py
+++ b/addons/stock/stock.py
@@ -2573,8 +2573,19 @@ class stock_inventory(osv.osv):
         """ Cancels the stock move and change inventory state to draft.
         @return: True
         """
+        move_obj = self.pool.get('stock.move')
+        account_move_obj = self.pool.get('account.move')
         for inv in self.browse(cr, uid, ids, context=context):
-            self.pool.get('stock.move').action_cancel(cr, uid, [x.id for x in inv.move_ids], context)
+            move_obj.action_cancel(cr, uid, [x.id for x in inv.move_ids], context)
+            for move in inv.move_ids:
+                 account_move_ids = account_move_obj.search(cr, uid, [('name','=',move.name)])
+                 if account_move_ids:
+                     account_move_data_l = account_move_obj.read(cr, uid, account_move_ids, ['state'])
+                     for account_move in account_move_data_l:
+                         if account_move['state'] == 'posted':
+                             raise osv.except_osv(_('UserError'),
+                                                  _('You can not cancel inventory which has any account move with posted state.'))
+                         account_move_obj.unlink(cr, uid, [account_move['id']])
             self.write(cr, uid, [inv.id], {'state': 'draft'})
         return True
 
diff --git a/addons/stock/stock_view.xml b/addons/stock/stock_view.xml
index 86135e8f13d..95e97161e5e 100644
--- a/addons/stock/stock_view.xml
+++ b/addons/stock/stock_view.xml
@@ -170,8 +170,8 @@
                     <group col="2" colspan="2">
                      <field name="state"/>
                     </group>
-                    <group col="2" colspan="2">
-                        <button name="action_cancel_inventary" states="draft" string="Cancel Inventory" type="object" icon="gtk-cancel"/>
+                    <group col="3" colspan="2">
+                        <button name="action_cancel_inventary" states="draft,confirm,done" string="Cancel Inventory" type="object" icon="gtk-cancel"/>
                         <button name="action_confirm" states="draft" string="Confirm Inventory" type="object" icon="gtk-apply"/>
                         <button name="action_done" states="confirm" string="Validate Inventory" type="object" icon="gtk-jump-to"/>
                         <button name="action_cancel" states="cancel" string="Set to Draft" type="object" icon="gtk-convert"/>