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I recently implemented Woocommerce and in trial session I found following issue:

1. Initially, I provide 10qty for Product1. 2. place a Dummy Order from front-end of 10qty of that Product1. 3. Then After that I see Product1 is Out of Stock. 4. From Admin of woocommerce, If I cancelled that dummy order or reduce the product qty on that order, It Doesn't Update the Stock Qty of that product1.

And I still see the Out of stock label on that product even after that order has been cancelled which reserved this qty.

Hence is their any way to Auto-Manage this Stock Updates between orders and Inventory.

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Sorry to Trouble this Slept world of Wordpress. I got My answers From Awaked wordpress world,directly from Author of Plugin here: http://ilikekillnerds.com/2012/07/the-problem-with-woocommerce-its-crap/

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