If you have the appropriate permissions, you can change the state of a customer account. Each customer account has its status displayed on the Customer|Basic and Customer|Search pages.
The account's state can be:
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Active: The customer account can be modified and added to orders. By default, a newly created customer account has an Active state.
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Suspended: The customer account is read-only and cannot be added to an order.
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Closed: The customer account is read-only and cannot be added to an order.
There is no functionality difference between Suspended or Closed accounts, except for how they are used by your organization. Typically, accounts are Suspended with the intention of being reactivated at a later date (e.g. the temporary suspension may be due to an outstanding debt). Closed accounts are generally not reopened and may be closed due to a customer moving out of the vicinity or a company going out of business. For more information, refer to Suspending or Closing a Customer Account.
Both Suspended and Closed accounts can be reactivated. For more information, refer to Reactivating a Suspended or Closed Customer Account.