How does putting a debtor On Hold impact creating sales orders?

Question

What impact does setting a debtor account 'On Hold' have on creating sales orders?

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Answer

There is an Invoicing system setting that controls what happens when a customer is put On Hold - 

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When the setting is ticked, creating a new sales order for a customer who's account is On Hold displays the following message.

The order can only be saved as an Order Type of Reserve Order i.e. the order cannot be processed until the account has been taken off hold.

Where the setting is un-ticked, a new order for the customer cannot be saved at all until the account has been taken off hold.