diff --git a/erpnext/accounts/doctype/pos_closing_entry/pos_closing_entry.py b/erpnext/accounts/doctype/pos_closing_entry/pos_closing_entry.py
index ea93b23aa11..7b2b9e922bd 100644
--- a/erpnext/accounts/doctype/pos_closing_entry/pos_closing_entry.py
+++ b/erpnext/accounts/doctype/pos_closing_entry/pos_closing_entry.py
@@ -217,7 +217,8 @@ class POSClosingEntry(StatusUpdater):
 		self.update_sales_invoices_closing_entry()
 
 	def before_cancel(self):
-		self.check_pce_is_cancellable()
+		if self.status != "Failed":
+			self.check_pce_is_cancellable()
 
 	def on_cancel(self):
 		unconsolidate_pos_invoices(closing_entry=self)