How to record a Bill that eventually cancelled?

JNL

Hi

I have created a Bill in Wave to record a Purchase, and did a bank transfer to the Vendor. Due to unforeseen circumstances, the purchase is to be cancelled and the monies refunded.

I set the Payment category as "Payment for a bill in Wave" and Refunder as "Refund for a bill in Wave".

Now the Bill obviously still have full amount as "unpaid". How should I handle the bill? Technically speaking the purchase is no longer needed and monies are refunded.