diff --git a/addons/account/wizard/account_invoice_refund.py b/addons/account/wizard/account_invoice_refund.py
index 226b3e711f8..638b0e1fc1e 100644
--- a/addons/account/wizard/account_invoice_refund.py
+++ b/addons/account/wizard/account_invoice_refund.py
@@ -87,7 +87,7 @@ class AccountInvoiceRefund(models.TransientModel):
                         invoice = invoice[0]
                         del invoice['id']
                         invoice_lines = inv_line_obj.browse(invoice['invoice_line_ids'])
-                        invoice_lines = inv_obj._refund_cleanup_lines(invoice_lines)
+                        invoice_lines = inv_obj.with_context(mode='modify')._refund_cleanup_lines(invoice_lines)
                         tax_lines = inv_tax_obj.browse(invoice['tax_line_ids'])
                         tax_lines = inv_obj._refund_cleanup_lines(tax_lines)
                         invoice.update({
diff --git a/addons/sale/sale.py b/addons/sale/sale.py
index 02b00c9680c..3bea2419718 100644
--- a/addons/sale/sale.py
+++ b/addons/sale/sale.py
@@ -52,6 +52,9 @@ class SaleOrder(models.Model):
         """
         for order in self:
             invoice_ids = order.order_line.mapped('invoice_lines').mapped('invoice_id')
+            # Search for invoices which have been 'cancelled' (filter_refund = 'modify' in
+            # 'account.invoice.refund')
+            invoice_ids |= invoice_ids.search([('origin', 'like', order.name)])
             # Search for refunds as well
             refund_ids = self.env['account.invoice'].browse()
             if invoice_ids:
@@ -835,6 +838,16 @@ class AccountInvoice(models.Model):
             order.message_post(body=_("Invoice %s paid") % (name))
         return res
 
+    @api.model
+    def _refund_cleanup_lines(self, lines):
+        result = super(AccountInvoice, self)._refund_cleanup_lines(lines)
+        if self.env.context.get('mode') == 'modify':
+            for i in xrange(0, len(lines)):
+                for name, field in lines[i]._fields.iteritems():
+                    if name == 'sale_line_ids':
+                        result[i][2][name] = [(6, 0, lines[i][name].ids)]
+                        lines[i][name] = False
+        return result
 
 class AccountInvoiceLine(models.Model):
     _inherit = 'account.invoice.line'