Stock Availability status does not change to 'in stock' when order is canceled

Question

A Product (simple product) having qty 1 or you can say all qty is ordered and If order would canceled

product qty automatically reset to original but Stock Availability remain out of stock.

How to automatically reset Stock Availability to in stock along with product qty?

Answer 1

There is a setting for that. It's System->Configuration->Inventory->Stock Options->Set Items' Status to be In Stock When Order is Cancelled. Set that to Yes and clear the cache.