diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice.js b/erpnext/accounts/doctype/sales_invoice/sales_invoice.js
index 773d1cf..78c39bd 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice.js
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice.js
@@ -158,7 +158,7 @@
 					},
 					get_query_filters: {
 						docstatus: 1,
-						status: ["!=", "Closed"],
+						status: ["not in", ["Closed", "On Hold"]],
 						per_billed: ["<", 99.99],
 						company: me.frm.doc.company
 					}
diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
index 4cf3a1a..6375413 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice.py
@@ -81,7 +81,7 @@
 		self.validate_with_previous_doc()
 		self.validate_uom_is_integer("stock_uom", "stock_qty")
 		self.validate_uom_is_integer("uom", "qty")
-		self.check_close_sales_order("sales_order")
+		self.check_sales_order_on_hold_or_close("sales_order")
 		self.validate_debit_to_acc()
 		self.clear_unallocated_advances("Sales Invoice Advance", "advances")
 		self.add_remarks()
@@ -206,7 +206,7 @@
 		self.update_time_sheet(None)
 
 	def on_cancel(self):
-		self.check_close_sales_order("sales_order")
+		self.check_sales_order_on_hold_or_close("sales_order")
 
 		from erpnext.accounts.utils import unlink_ref_doc_from_payment_entries
 		if frappe.db.get_single_value('Accounts Settings', 'unlink_payment_on_cancellation_of_invoice'):