diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
index 5c0e8fa..857842d 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
@@ -96,7 +96,7 @@
 					},
 					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/purchase_invoice/purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
index c0d0d83..5080ccf 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
@@ -15,7 +15,7 @@
 from erpnext.stock import get_warehouse_account_map
 from erpnext.accounts.general_ledger import make_gl_entries, merge_similar_entries, delete_gl_entries
 from erpnext.accounts.doctype.gl_entry.gl_entry import update_outstanding_amt
-from erpnext.buying.utils import check_for_closed_status
+from erpnext.buying.utils import check_on_hold_or_closed_status
 from erpnext.accounts.general_ledger import get_round_off_account_and_cost_center
 from erpnext.assets.doctype.asset.asset import get_asset_account
 from frappe.model.mapper import get_mapped_doc
@@ -93,7 +93,7 @@
 		self.check_conversion_rate()
 		self.validate_credit_to_acc()
 		self.clear_unallocated_advances("Purchase Invoice Advance", "advances")
-		self.check_for_closed_status()
+		self.check_on_hold_or_closed_status()
 		self.validate_with_previous_doc()
 		self.validate_uom_is_integer("uom", "qty")
 		self.validate_uom_is_integer("stock_uom", "stock_qty")
@@ -156,13 +156,13 @@
 
 		self.party_account_currency = account.account_currency
 
-	def check_for_closed_status(self):
+	def check_on_hold_or_closed_status(self):
 		check_list = []
 
 		for d in self.get('items'):
 			if d.purchase_order and not d.purchase_order in check_list and not d.purchase_receipt:
 				check_list.append(d.purchase_order)
-				check_for_closed_status('Purchase Order', d.purchase_order)
+				check_on_hold_or_closed_status('Purchase Order', d.purchase_order)
 
 	def validate_with_previous_doc(self):
 		super(PurchaseInvoice, self).validate_with_previous_doc({
@@ -754,7 +754,7 @@
 	def on_cancel(self):
 		super(PurchaseInvoice, self).on_cancel()
 
-		self.check_for_closed_status()
+		self.check_on_hold_or_closed_status()
 
 		self.update_status_updater_args()
 
diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.py b/erpnext/buying/doctype/purchase_order/purchase_order.py
index 93805fb..f294ee4 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.py
@@ -11,7 +11,7 @@
 from erpnext.stock.doctype.item.item import get_last_purchase_details
 from erpnext.stock.stock_balance import update_bin_qty, get_ordered_qty
 from frappe.desk.notifications import clear_doctype_notifications
-from erpnext.buying.utils import validate_for_items, check_for_closed_status
+from erpnext.buying.utils import validate_for_items, check_on_hold_or_closed_status
 from erpnext.stock.utils import get_bin
 from erpnext.accounts.party import get_party_account_currency
 from six import string_types
@@ -45,7 +45,7 @@
 		self.validate_supplier()
 		self.validate_schedule_date()
 		validate_for_items(self)
-		self.check_for_closed_status()
+		self.check_on_hold_or_closed_status()
 
 		self.validate_uom_is_integer("uom", "qty")
 		self.validate_uom_is_integer("stock_uom", "stock_qty")
@@ -144,12 +144,12 @@
 							= d.rate = d.last_purchase_rate = item_last_purchase_rate
 
 	# Check for Closed status
-	def check_for_closed_status(self):
+	def check_on_hold_or_closed_status(self):
 		check_list =[]
 		for d in self.get('items'):
 			if d.meta.get_field('material_request') and d.material_request and d.material_request not in check_list:
 				check_list.append(d.material_request)
-				check_for_closed_status('Material Request', d.material_request)
+				check_on_hold_or_closed_status('Material Request', d.material_request)
 
 	def update_requested_qty(self):
 		material_request_map = {}
diff --git a/erpnext/buying/utils.py b/erpnext/buying/utils.py
index 9ad1c5c..981ee5d 100644
--- a/erpnext/buying/utils.py
+++ b/erpnext/buying/utils.py
@@ -73,10 +73,10 @@
 		not cint(frappe.db.get_single_value("Buying Settings", "allow_multiple_items") or 0):
 		frappe.throw(_("Same item cannot be entered multiple times."))
 
-def check_for_closed_status(doctype, docname):
+def check_on_hold_or_closed_status(doctype, docname):
 	status = frappe.db.get_value(doctype, docname, "status")
 
-	if status == "Closed":
+	if status in ("Closed", "On Hold"):
 		frappe.throw(_("{0} {1} status is {2}").format(doctype, docname, status), frappe.InvalidStatusError)
 
 @frappe.whitelist()
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.js b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.js
index a7fc845..0123101 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.js
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.js
@@ -88,7 +88,7 @@
 							},
 							get_query_filters: {
 								docstatus: 1,
-								status: ["!=", "Closed"],
+								status: ["not in", ["Closed", "On Hold"]],
 								per_received: ["<", 99.99],
 								company: me.frm.doc.company
 							}
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index a3c1e27..1350e0c 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -12,7 +12,7 @@
 from erpnext.controllers.buying_controller import BuyingController
 from erpnext.accounts.utils import get_account_currency
 from frappe.desk.notifications import clear_doctype_notifications
-from erpnext.buying.utils import check_for_closed_status
+from erpnext.buying.utils import check_on_hold_or_closed_status
 from erpnext.assets.doctype.asset.asset import get_asset_account
 from six import iteritems
 
@@ -62,7 +62,7 @@
 		self.validate_uom_is_integer("uom", ["qty", "received_qty"])
 		self.validate_uom_is_integer("stock_uom", "stock_qty")
 
-		self.check_for_closed_status()
+		self.check_on_hold_or_closed_status()
 
 		if getdate(self.posting_date) > getdate(nowdate()):
 			throw(_("Posting Date cannot be future date"))
@@ -103,13 +103,13 @@
 		return po_qty, po_warehouse
 
 	# Check for Closed status
-	def check_for_closed_status(self):
+	def check_on_hold_or_closed_status(self):
 		check_list =[]
 		for d in self.get('items'):
 			if (d.meta.get_field('purchase_order') and d.purchase_order
 				and d.purchase_order not in check_list):
 				check_list.append(d.purchase_order)
-				check_for_closed_status('Purchase Order', d.purchase_order)
+				check_on_hold_or_closed_status('Purchase Order', d.purchase_order)
 
 	# on submit
 	def on_submit(self):
@@ -147,7 +147,7 @@
 	def on_cancel(self):
 		super(PurchaseReceipt, self).on_cancel()
 
-		self.check_for_closed_status()
+		self.check_on_hold_or_closed_status()
 		# Check if Purchase Invoice has been submitted against current Purchase Order
 		submitted = frappe.db.sql("""select t1.name
 			from `tabPurchase Invoice` t1,`tabPurchase Invoice Item` t2