diff --git a/models/hr_expense_sheet.py b/models/hr_expense_sheet.py
index 07034f2..0f76e9f 100644
--- a/models/hr_expense_sheet.py
+++ b/models/hr_expense_sheet.py
@@ -10,7 +10,7 @@ class HrExpenseSheet(models.Model):
         ('wait_post', 'Wait Post')
     ], ondelete={'wait_post': 'set default'})
 
-    @api.depends('account_move_ids.payment_state', 'account_move_ids.amount_residual', 'expense_line_ids.receipt_received', 'expense_line_ids.realization_ids.state')
+    @api.depends('account_move_ids.payment_state', 'account_move_ids.amount_residual', 'account_move_ids.state', 'expense_line_ids.receipt_received', 'expense_line_ids.realization_ids.state')
     def _compute_state(self):
         # Store original states to detect transition to 'done'
         original_states = {sheet.id: sheet.state for sheet in self}
@@ -18,6 +18,12 @@ class HrExpenseSheet(models.Model):
         super()._compute_state()
         
         for sheet in self:
+            # FIX: If we have moves but they are ALL canceled, Odoo super() incorrectly sets state='post'.
+            # We must force it back to approval_state or draft.
+            active_moves = sheet.account_move_ids.filtered(lambda m: m.state != 'cancel')
+            if not active_moves and sheet.state == 'post':
+                sheet.state = sheet.approval_state or 'draft'
+
             # Check for Company Account expenses
             company_paid = sheet.expense_line_ids.filtered(lambda e: e.payment_mode == 'company_account')
             
@@ -212,8 +218,8 @@ class HrExpenseSheet(models.Model):
                         cancel=True
                     )
                 
-                # Unlink draft moves (including payment moves that are now draft/cancel)
-                sheet.account_move_ids.filtered(lambda m: m.state == 'draft').unlink()
+                # Unlink draft/canceled moves (including payment moves that are now draft/cancel)
+                sheet.account_move_ids.filtered(lambda m: m.state in ('draft', 'cancel')).unlink()
 
     def action_reset_expense_sheets(self):
         """