Pending orders still subtract stock. With this extension you can configure an automated cancellation period for each payment method, returning products into stock.
It is required to configure Cron schedules. Make sure that Magento's /cron.php is called every 5-15 minutes. Ask your hosting provider for help. See cron settings in Magento via System > Configuration > System > Cron (Scheduled Tasks).
How It WOrks
Automatically cancel pending (unpaid) orders by using a cron schedule action. Specify your payment methods and their desired order statuses. Set different periods for each status.
- cancel unpaid (pending, processing) orders automatically
- act on Order Creation Time or Order Last Updated time
- return products back into stock (depends on your Magento settings > System > Configuration > Inventory)
- set a custom auto-cancel status (to filter the order grid), or use default
- specify rules for each payment method, and for each order status individually
- note: depends on a working cron schedule; read the wiki how to setup a cron schedule
- note: does not cancel invoiced orders
- note: does not create credit memo's (because it does not cancel invoiced orders)