diff --git a/doc/development/concepts.rst b/doc/development/concepts.rst
index d8c9ae2ee..3018addb4 100644
--- a/doc/development/concepts.rst
+++ b/doc/development/concepts.rst
@@ -82,6 +82,12 @@ Orders
 ^^^^^^
 
 If a customer completes the checkout process, an **Order** will be created containing all the entered information.
-An order can be in one of currently five states that are listed in the diagram below:
+An order can be in one of currently four states that are listed in the diagram below:
 
 .. image:: /images/order_states.png
+
+There are additional "fake" states that are displayed like states but not represented as states in the system:
+
+* An order is considered **canceled (with paid fee)** if it is in **paid** status but does not include any non-cancelled positions.
+
+* An order is considered **requiring approval** if it is in **pending** status with the ``require_approval`` attribute set to ``True``.
diff --git a/doc/images/order_states.png b/doc/images/order_states.png
index a47808d4b..84e9b0eb1 100644
Binary files a/doc/images/order_states.png and b/doc/images/order_states.png differ
diff --git a/doc/images/order_states.puml b/doc/images/order_states.puml
index 743c4207c..5465725af 100644
--- a/doc/images/order_states.puml
+++ b/doc/images/order_states.puml
@@ -4,7 +4,6 @@ Pending: Order is expecting payment\nOrder reduces quotas
 Expired: Payment period is over\nOrder does not affect quotas
 Paid: Order was successful\nOrder reduces quotas
 Canceled: Order has been canceled\nOrder does not affect quotas
-Refunded: Order has been refunded\nOrder does not affect quotas
 
 [*] --> Pending: customer\nplaces order
 Pending --> Paid: successful payment
@@ -12,8 +11,9 @@ Pending --> Expired: automatically\nor manually\non admin action
 Expired --> Paid: if payment is received\nonly if quota left
 Expired --> Canceled
 Expired --> Pending: manually\non admin action
-Paid --> Refunded: manually on\nadmin action\nor if an external\npayment provider\nnotifies about a\npayment refund
+Paid --> Canceled: manually on\nadmin action\nor if an external\npayment provider\nnotifies about a\npayment refund
 Pending --> Canceled: on admin or\ncustomer action
 Paid -> Pending: manually on admin action
+[*] --> Paid: customer\nplaces free order
 
 @enduml