When cancelling a booking/activity (i.e. changing the status to Cancellation Confirmed), it would be useful if it also cancelled out the cost under the Pricing tab for that supplier. This way, the cost isn't included in the total amount, but it can still be identified in the itinerary as a cancelled activity.
Current solution
When an Item is cancelled assign the Cancelled status and adjust the Net and Gross prices to either $0 or cancellation fee values.
To hide the item completely but keep the price history record we recommend selecting the 'Hide from itinerary and inclusions' checkbox to keep this item out of traveller documentation. Alternatively you can delete the item from the if keeping price history /booking notes is not important. The supplier payment will need to be manually deleted but will adjust to the net price value once this is edited.