Assign document tye to do cancellation of cancellation document(S1)

You can go to tcode VOFA to assign the document type 'S3' to document type 'S1', but remember to put different number range for 'S3'. Please take a look on the printscreen below.

Assign document type 'S3' inside document type 'S1' as below.

Assign number range to billing type

Go to tcode VOFA and assign the number range in the billing type.

Assign the number range as higlighted below.

Automatically set posting block for billing document

Please go to tcode VOFA and tick the posting block in order to stop accounting document from directly release to accounting side.

Setting item no incremental for Billing Type

You can set any kind of item no incremental for your billing type by go through tcode VOFA.

Please refer to below printscreen.