diff --git a/erpnext/accounts/doctype/fiscal_year/fiscal_year.py b/erpnext/accounts/doctype/fiscal_year/fiscal_year.py
index ce76354..c3f399d 100644
--- a/erpnext/accounts/doctype/fiscal_year/fiscal_year.py
+++ b/erpnext/accounts/doctype/fiscal_year/fiscal_year.py
@@ -41,7 +41,7 @@
 
 	def on_update(self):
 		check_duplicate_fiscal_year(self)
-		
+
 	def validate_overlap(self):
 		existing_fiscal_years = frappe.db.sql("""select name from `tabFiscal Year`
 			where (
@@ -60,18 +60,18 @@
 			for existing in existing_fiscal_years:
 				company_for_existing = frappe.db.sql_list("""select company from `tabFiscal Year Company`
 					where parent=%s""", existing.name)
-				
+
 				overlap = False
 				if not self.get("companies") or not company_for_existing:
 					overlap = True
-			
+
 				for d in self.get("companies"):
 					if d.company in company_for_existing:
 						overlap = True
-					
+
 				if overlap:
 					frappe.throw(_("Year start date or end date is overlapping with {0}. To avoid please set company")
-						.format(existing.name))
+						.format(existing.name), frappe.NameError)
 
 @frappe.whitelist()
 def check_duplicate_fiscal_year(doc):
diff --git a/erpnext/accounts/party_status.py b/erpnext/accounts/party_status.py
new file mode 100644
index 0000000..d0f60a5
--- /dev/null
+++ b/erpnext/accounts/party_status.py
@@ -0,0 +1,72 @@
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+
+import frappe
+
+from frappe.utils import evaluate_filters
+from erpnext.startup.notifications import get_notification_config
+
+status_depends_on = {
+	'Customer': ('Opportunity', 'Quotation', 'Sales Order', 'Sales Invoice', 'Project', 'Issue'),
+	'Supplier': ('Supplier Quotation', 'Purchase Order', 'Purchase Invoice')
+}
+
+default_status = {
+	'Customer': 'Active',
+	'Supplier': None
+}
+
+def notify_status(doc, method):
+	'''Notify status to customer, supplier'''
+
+	party_type = None
+	for key, doctypes in status_depends_on.iteritems():
+		if doc.doctype in doctypes:
+			party_type = key
+			break
+
+	if not party_type:
+		return
+
+	party = frappe.get_doc(party_type, doc.get(party_type.lower()))
+	config = get_notification_config().get('for_doctype').get(doc.doctype)
+
+	status = None
+	if config:
+		if evaluate_filters(doc, config):
+			# filters match, passed document is open
+			status = 'Open'
+
+	if status=='Open':
+		if party.status != 'Open':
+			# party not open, make it open
+			party.status = 'Open'
+			party.save(ignore_permissions=True)
+
+	else:
+		if party.status == 'Open':
+			# may be open elsewhere, check
+			# default status
+			party.status = status
+			update_status(party, )
+
+def update_status(doc):
+	'''Set status as open if there is any open notification'''
+	config = get_notification_config()
+
+	original_status = doc.status
+
+	doc.status = default_status[doc.doctype]
+	for doctype in status_depends_on[doc.doctype]:
+		filters = config.get('for_doctype', {}).get(doctype) or {}
+		filters[doc.doctype.lower()] = doc.name
+		if filters:
+			open_count = frappe.get_all(doctype, fields='count(*) as count', filters=filters)
+			if open_count[0].count > 0:
+				doc.status = 'Open'
+				break
+
+	if doc.status != original_status:
+		doc.db_set('status', doc.status)
diff --git a/erpnext/buying/doctype/supplier/supplier.json b/erpnext/buying/doctype/supplier/supplier.json
index 46ea98f..bafa142 100644
--- a/erpnext/buying/doctype/supplier/supplier.json
+++ b/erpnext/buying/doctype/supplier/supplier.json
@@ -118,6 +118,32 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "fieldname": "status", 
+   "fieldtype": "Select", 
+   "hidden": 1, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Status", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "\nOpen", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 1, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "fieldname": "column_break0", 
    "fieldtype": "Column Break", 
    "hidden": 0, 
@@ -658,7 +684,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2016-04-06 05:39:47.329568", 
+ "modified": "2016-04-08 07:43:07.541419", 
  "modified_by": "Administrator", 
  "module": "Buying", 
  "name": "Supplier", 
diff --git a/erpnext/buying/doctype/supplier/supplier_list.js b/erpnext/buying/doctype/supplier/supplier_list.js
index d26932c..acf8e68 100644
--- a/erpnext/buying/doctype/supplier/supplier_list.js
+++ b/erpnext/buying/doctype/supplier/supplier_list.js
@@ -1,3 +1,8 @@
 frappe.listview_settings['Supplier'] = {
-	add_fields: ["supplier_name", "supplier_type"]
+	add_fields: ["supplier_name", "supplier_type", 'status'],
+	get_indicator: function(doc) {
+		if(doc.status==="Open") {
+			return [doc.status, "red", "status,=," + doc.status];
+		}
+	}
 };
diff --git a/erpnext/hooks.py b/erpnext/hooks.py
index 72bc40d..1a521c6 100644
--- a/erpnext/hooks.py
+++ b/erpnext/hooks.py
@@ -127,15 +127,18 @@
 		"on_update": "erpnext.hr.doctype.employee.employee.update_user_permissions",
 		"on_update": "erpnext.utilities.doctype.contact.contact.update_contact"
 	},
-	"Sales Taxes and Charges Template": {
-		"on_update": "erpnext.shopping_cart.doctype.shopping_cart_settings.shopping_cart_settings.validate_cart_settings"
-	},
-	"Price List": {
+	("Sales Taxes and Charges Template", 'Price List'): {
 		"on_update": "erpnext.shopping_cart.doctype.shopping_cart_settings.shopping_cart_settings.validate_cart_settings"
 	},
 	"Address": {
 		"validate": "erpnext.shopping_cart.cart.set_customer_in_address"
-	}
+	},
+
+	# bubble transaction notification on master
+	('Opportunity', 'Quotation', 'Sales Order', 'Sales Invoice', 'Supplier Quotation',
+		'Purchase Order', 'Purchase Invoice', 'Project', 'Issue'): {
+			'on_update': 'erpnext.accounts.party_status.notify_status'
+		}
 }
 
 scheduler_events = {
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 5c2376e..975d589 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -260,3 +260,4 @@
 erpnext.patches.v6_27.fix_recurring_order_status
 erpnext.patches.v6_20x.remove_customer_supplier_roles
 erpnext.patches.v6_24.rename_item_field
+erpnext.patches.v7_0.update_party_status
diff --git a/erpnext/patches/v7_0/__init__.py b/erpnext/patches/v7_0/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/patches/v7_0/__init__.py
diff --git a/erpnext/patches/v7_0/update_party_status.py b/erpnext/patches/v7_0/update_party_status.py
new file mode 100644
index 0000000..c9cab95
--- /dev/null
+++ b/erpnext/patches/v7_0/update_party_status.py
@@ -0,0 +1,7 @@
+import frappe
+
+def execute():
+	for doctype in ('Customer', 'Supplier'):
+		for doc in frappe.get_all(doctype):
+			doc = frappe.get_doc(doctype, doc.name)
+			doc.update_status()
\ No newline at end of file
diff --git a/erpnext/selling/doctype/customer/customer.json b/erpnext/selling/doctype/customer/customer.json
index 6974eb5..ba7aa24 100644
--- a/erpnext/selling/doctype/customer/customer.json
+++ b/erpnext/selling/doctype/customer/customer.json
@@ -170,6 +170,33 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "default": "Active", 
+   "fieldname": "status", 
+   "fieldtype": "Select", 
+   "hidden": 1, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Status", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Active\nDormant\nOpen", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 1, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "fieldname": "column_break0", 
    "fieldtype": "Column Break", 
    "hidden": 0, 
@@ -927,7 +954,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2016-04-07 01:25:25.676480", 
+ "modified": "2016-04-08 07:43:01.381976", 
  "modified_by": "Administrator", 
  "module": "Selling", 
  "name": "Customer", 
diff --git a/erpnext/selling/doctype/customer/customer_list.js b/erpnext/selling/doctype/customer/customer_list.js
index 012d3f8..d650b01 100644
--- a/erpnext/selling/doctype/customer/customer_list.js
+++ b/erpnext/selling/doctype/customer/customer_list.js
@@ -1,3 +1,12 @@
 frappe.listview_settings['Customer'] = {
-	add_fields: ["customer_name", "territory", "customer_group", "customer_type"]
+	add_fields: ["customer_name", "territory", "customer_group", "customer_type", 'status'],
+	get_indicator: function(doc) {
+		color = {
+			'Open': 'red',
+			'Active': 'green',
+			'Dormant', 'dardgrey'
+		}
+		return [__(doc.status), color[doc.status], "status,=," + doc.status];
+	}
+
 };
diff --git a/erpnext/selling/doctype/customer/test_customer.py b/erpnext/selling/doctype/customer/test_customer.py
index 1ca5ce7..85b216b 100644
--- a/erpnext/selling/doctype/customer/test_customer.py
+++ b/erpnext/selling/doctype/customer/test_customer.py
@@ -11,6 +11,8 @@
 
 test_ignore = ["Price List"]
 
+test_dependencies = ['Quotation']
+
 test_records = frappe.get_test_records('Customer')
 
 class TestCustomer(unittest.TestCase):
@@ -99,24 +101,65 @@
 		frappe.db.sql("delete from `tabCustomer` where customer_name='_Test Customer 1'")
 
 		if not frappe.db.get_value("Customer", "_Test Customer 1"):
-			test_customer_1 = frappe.get_doc({
-				 "customer_group": "_Test Customer Group",
-				 "customer_name": "_Test Customer 1",
-				 "customer_type": "Individual",
-				 "doctype": "Customer",
-				 "territory": "_Test Territory"
-			}).insert(ignore_permissions=True)
+			test_customer_1 = frappe.get_doc(
+				get_customer_dict('_Test Customer 1')).insert(ignore_permissions=True)
 		else:
 			test_customer_1 = frappe.get_doc("Customer", "_Test Customer 1")
 
-		duplicate_customer = frappe.get_doc({
-			 "customer_group": "_Test Customer Group",
-			 "customer_name": "_Test Customer 1",
-			 "customer_type": "Individual",
-			 "doctype": "Customer",
-			 "territory": "_Test Territory"
-		}).insert(ignore_permissions=True)
+		duplicate_customer = frappe.get_doc(
+			get_customer_dict('_Test Customer 1')).insert(ignore_permissions=True)
 
 		self.assertEquals("_Test Customer 1", test_customer_1.name)
 		self.assertEquals("_Test Customer 1 - 1", duplicate_customer.name)
 		self.assertEquals(test_customer_1.customer_name, duplicate_customer.customer_name)
+
+	def test_party_status_open(self):
+		from erpnext.selling.doctype.quotation.test_quotation import get_quotation_dict
+
+		customer = frappe.get_doc(get_customer_dict('Party Status Test')).insert()
+		self.assertEquals(frappe.db.get_value('Customer', customer.name, 'status'), 'Active')
+
+		quotation = frappe.get_doc(get_quotation_dict(customer=customer.name)).insert()
+		self.assertEquals(frappe.db.get_value('Customer', customer.name, 'status'), 'Open')
+
+		quotation.submit()
+		self.assertEquals(frappe.db.get_value('Customer', customer.name, 'status'), 'Active')
+
+		quotation.cancel()
+		quotation.delete()
+		customer.delete()
+
+	def test_party_status_close(self):
+		from erpnext.selling.doctype.quotation.test_quotation import get_quotation_dict
+
+		customer = frappe.get_doc(get_customer_dict('Party Status Test')).insert()
+		self.assertEquals(frappe.db.get_value('Customer', customer.name, 'status'), 'Active')
+
+		# open quotation
+		quotation = frappe.get_doc(get_quotation_dict(customer=customer.name)).insert()
+		self.assertEquals(frappe.db.get_value('Customer', customer.name, 'status'), 'Open')
+
+		# close quotation (submit)
+		quotation.submit()
+
+		quotation1 = frappe.get_doc(get_quotation_dict(customer=customer.name)).insert()
+
+		# still open
+		self.assertEquals(frappe.db.get_value('Customer', customer.name, 'status'), 'Open')
+
+		quotation.cancel()
+		quotation.delete()
+
+		quotation1.delete()
+
+		customer.delete()
+
+def get_customer_dict(customer_name):
+	return {
+		 "customer_group": "_Test Customer Group",
+		 "customer_name": customer_name,
+		 "customer_type": "Individual",
+		 "doctype": "Customer",
+		 "territory": "_Test Territory"
+	}
+
diff --git a/erpnext/selling/doctype/quotation/test_quotation.py b/erpnext/selling/doctype/quotation/test_quotation.py
index e3b359d..36cc472 100644
--- a/erpnext/selling/doctype/quotation/test_quotation.py
+++ b/erpnext/selling/doctype/quotation/test_quotation.py
@@ -69,3 +69,21 @@
 		si.save()
 
 test_records = frappe.get_test_records('Quotation')
+
+def get_quotation_dict(customer=None, item_code=None):
+	if not customer:
+		customer = '_Test Customer'
+	if not item_code:
+		item_code = '_Test Item'
+
+	return {
+		'doctype': 'Quotation',
+		'customer': customer,
+		'items': [
+			{
+				'item_code': item_code,
+				'qty': 1,
+				'rate': 100
+			}
+		]
+	}
\ No newline at end of file