ENGCOM-3978: [Backport] Fixed Issue #20121 Cancel order increases stock although 'Set Items' Status to be In Stock When Order is Cancelled' is set to No #20547

 - Merge Pull Request #20547 from irajneeshgupta/magento2:2.2-develop-PR-port-20252
 - Merged commits:
   1. 331b5c1
   2. cc6b848

Author: magento-engcom-team

app/code/Magento/CatalogInventory/Observer/CancelOrderItemObserver.php

@@ -6,15 +6,21 @@
 
 namespace Magento\CatalogInventory\Observer;
 
-use Magento\Framework\Event\ObserverInterface;
 use Magento\CatalogInventory\Api\StockManagementInterface;
+use Magento\CatalogInventory\Model\Configuration;
 use Magento\Framework\Event\Observer as EventObserver;
+use Magento\Framework\Event\ObserverInterface;
 
 /**
  * Catalog inventory module observer
  */
 class CancelOrderItemObserver implements ObserverInterface
 {
+    /**
+     * @var \Magento\CatalogInventory\Model\Configuration
+     */
+    protected $configuration;
+
     /**
      * @var StockManagementInterface
      */
@@ -26,13 +32,16 @@ class CancelOrderItemObserver implements ObserverInterface
     protected $priceIndexer;
 
     /**
+     * @param Configuration $configuration
      * @param StockManagementInterface $stockManagement
      * @param \Magento\Catalog\Model\Indexer\Product\Price\Processor $priceIndexer
      */
     public function __construct(
+        Configuration $configuration,
         StockManagementInterface $stockManagement,
         \Magento\Catalog\Model\Indexer\Product\Price\Processor $priceIndexer
     ) {
+        $this->configuration = $configuration;
         $this->stockManagement = $stockManagement;
         $this->priceIndexer = $priceIndexer;
     }
@@ -49,7 +58,8 @@ public function execute(EventObserver $observer)
         $item = $observer->getEvent()->getItem();
         $children = $item->getChildrenItems();
         $qty = $item->getQtyOrdered() - max($item->getQtyShipped(), $item->getQtyInvoiced()) - $item->getQtyCanceled();
-        if ($item->getId() && $item->getProductId() && empty($children) && $qty) {
+        if ($item->getId() && $item->getProductId() && empty($children) && $qty && $this->configuration
+            ->getCanBackInStock()) {
             $this->stockManagement->backItemQty($item->getProductId(), $qty, $item->getStore()->getWebsiteId());
         }
         $this->priceIndexer->reindexRow($item->getProductId());