You can only cancel visits in the future, you must use the reports section to edit any visits in the past.
Cancelling in Client Calendar
Open people > client > calendar.
Select the visit you want to cancel.
A pop up will appear, select cancel visit and enter the reason for cancellation.
The cancelled visit will turn grey, you can un-cancel it by clicking on the visit again.
Cancelling on Schedule Page
Open the schedule page.
Click on the visit you wish to cancel.
Enter the reason for visit cancellation and click cancel visit.
Select the billing time for that visit
You can un-cancel it by clicking on the visit box again.
You can add a specific note to your cancelled visits too. To see cancellation reasons in your invoice reports you just need to tick the box for cancellation notes in the 'Settings' menu in Reports.
If a cancelled visit has a billed time = 0, it won't appear in the invoicing, so make sure that cancelled visits have the correct billed time before to create invoices (in the Visit List report you can filter to see only cancelled visits and go through that list)