(Source: AutoCount Forum, 12 Mar.2009)
The difference of Discontinued and Inactive Items
Discontinued: Item that is 'Discontinued' means no longer available from supplier, but you may still have stock to sell. There will be no more new purchases of this item (this item will not appear for selection in PO and Request Quotation); however, it is still allowed for Purchase Return, Purchase Invoice, Goods Receive Note and Cash Purchase (to complete orders that were issued earlier). Selling of this item is allowable.
Inactive: Item that is 'Inactive' means no longer in trading. The item will not appear for selection in all types of document entry screen.
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