diff --git a/CHANGELOG.md b/CHANGELOG.md
index ea0dac213..403645de5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -22,6 +22,7 @@
 * *BREAKING* bump `react-intl` to `v6.4.4`. Refs UIOR-1146.
 * When order line contains bad product IDs - the save & close does not work. Refs UIOR-1141.
 * Upgrade `ui-plugin-find-po-line` and `ui-plugin-find-organization` plugins to `5` version. Refs UIOR-1154.
+* POL - Display only active account numbers in dropdown list. Refs UIOR-1142.
 
 ## [4.0.2](https://github.com/folio-org/ui-orders/tree/v4.0.2) (2023-03-17)
 [Full Changelog](https://github.com/folio-org/ui-orders/compare/v4.0.1...v4.0.2)
diff --git a/src/components/POLine/Vendor/VendorForm.js b/src/components/POLine/Vendor/VendorForm.js
index 2b52699b8..30862f141 100644
--- a/src/components/POLine/Vendor/VendorForm.js
+++ b/src/components/POLine/Vendor/VendorForm.js
@@ -1,9 +1,11 @@
-import React, { useCallback } from 'react';
+import React, { useCallback, useMemo, useRef } from 'react';
 import PropTypes from 'prop-types';
 import { useForm } from 'react-final-form';
+import { FormattedMessage } from 'react-intl';
 
 import {
   Col,
+  MessageBanner,
   Row,
 } from '@folio/stripes/components';
 import { VendorReferenceNumbersFields } from '@folio/stripes-acq-components';
@@ -15,6 +17,9 @@ import {
 import { IfFieldVisible } from '../../../common/IfFieldVisible';
 import { isWorkflowStatusIsPending } from '../../PurchaseOrder/util';
 import { toggleAutomaticExport } from '../../Utils/toggleAutomaticExport';
+import { ACCOUNT_STATUS } from '../const';
+
+const { ACTIVE, INACTIVE } = ACCOUNT_STATUS;
 
 const VendorForm = ({
   order,
@@ -23,11 +28,21 @@ const VendorForm = ({
   integrationConfigs = [],
 }) => {
   const { change, getState } = useForm();
+  const { vendorDetail } = getState().values;
+  const currentAccountNumber = vendorDetail?.vendorAccount;
   const isPostPendingOrder = !isWorkflowStatusIsPending(order);
-  const accountsDataOptions = accounts.map(({ name, accountNo }) => ({
-    label: `${name} (${accountNo})`,
-    value: accountNo,
-  }));
+  const initialAccountNumber = useRef(currentAccountNumber);
+
+  const activeAccountOptions = useMemo(() => {
+    const activeAccounts = accounts.filter(({ accountStatus, accountNo }) => {
+      return accountStatus === ACTIVE || accountNo === initialAccountNumber.current;
+    });
+
+    return activeAccounts.map(({ name, accountNo, accountStatus }) => ({
+      label: `${name} (${accountNo}) ${accountStatus === INACTIVE ? ' - Inactive' : ''}`,
+      value: accountNo,
+    }));
+  }, [accounts, initialAccountNumber]);
 
   const onAccountChange = useCallback(
     ({ target: { value } }) => {
@@ -38,6 +53,20 @@ const VendorForm = ({
     }, [change, getState, integrationConfigs],
   );
 
+  const accountNumberDisabled = useMemo(() => {
+    const hasCurrentAccountNumber = accounts.some(({ accountNo }) => accountNo === currentAccountNumber);
+    const isOnlyOneActiveAccount = activeAccountOptions.length === 1;
+    const noActiveAccounts = activeAccountOptions.length === 0;
+
+    return noActiveAccounts || (hasCurrentAccountNumber && isOnlyOneActiveAccount);
+  }, [accounts, activeAccountOptions, currentAccountNumber]);
+
+  const isSelectedAccountInactive = useMemo(() => {
+    return accounts.some(({ accountNo, accountStatus }) => {
+      return accountNo === currentAccountNumber && accountStatus === INACTIVE;
+    });
+  }, [accounts, currentAccountNumber]);
+
   return (
     <>
       <VendorReferenceNumbersFields
@@ -50,10 +79,17 @@ const VendorForm = ({
             md={3}
           >
             <FieldVendorAccountNumber
-              accounts={accountsDataOptions}
-              disabled={isPostPendingOrder}
+              accounts={activeAccountOptions}
+              disabled={isPostPendingOrder || accountNumberDisabled}
               onChange={onAccountChange}
             />
+            {
+              isSelectedAccountInactive && (
+                <MessageBanner type="warning">
+                  <FormattedMessage id="ui-orders.vendor.accountNumber.inActive" />
+                </MessageBanner>
+              )
+            }
           </Col>
         </IfFieldVisible>
 
diff --git a/src/components/POLine/Vendor/VendorForm.test.js b/src/components/POLine/Vendor/VendorForm.test.js
index 95ad7a03e..535017eaf 100644
--- a/src/components/POLine/Vendor/VendorForm.test.js
+++ b/src/components/POLine/Vendor/VendorForm.test.js
@@ -38,4 +38,29 @@ describe('VendorForm', () => {
     expect(screen.getByText('ui-orders.vendor.accountNumber')).toBeInTheDocument();
     expect(screen.getByText('ui-orders.vendor.instructions')).toBeInTheDocument();
   });
+
+  it('should render active account numbers', () => {
+    const accounts = [
+      {
+        name: 'name',
+        accountNo: '1',
+        accountStatus: 'Active',
+      },
+      {
+        name: 'name2',
+        accountNo: '2',
+        accountStatus: 'Inactive',
+      },
+      {
+        name: 'name3',
+        accountNo: '3',
+        accountStatus: 'Active',
+      },
+    ];
+
+    renderVendorForm({ accounts });
+
+    expect(screen.getByText(`${accounts[0].name} (${accounts[0].accountNo})`)).toBeInTheDocument();
+    expect(screen.getByText(`${accounts[2].name} (${accounts[2].accountNo})`)).toBeInTheDocument();
+  });
 });
diff --git a/src/components/POLine/const.js b/src/components/POLine/const.js
index b7c8d9e90..e62ab7d47 100644
--- a/src/components/POLine/const.js
+++ b/src/components/POLine/const.js
@@ -62,3 +62,9 @@ export const POL_TEMPLATE_FIELDS_MAP = {
 export const INITIAL_SECTIONS = Object.values(ACCORDION_ID).reduce(
   (accum, id) => ({ ...accum, [id]: true }), {},
 );
+
+export const ACCOUNT_STATUS = {
+  ACTIVE: 'Active',
+  INACTIVE: 'Inactive',
+  PENDING: 'Pending',
+};
diff --git a/translations/ui-orders/en.json b/translations/ui-orders/en.json
index e9728a2fa..7bd6123ee 100644
--- a/translations/ui-orders/en.json
+++ b/translations/ui-orders/en.json
@@ -823,6 +823,7 @@
   "vendor.referenceNumbers": "Vendor reference numbers",
   "vendor.vendor_status": "Status",
   "vendor.accountNumber": "Account number",
+  "vendor.accountNumber.inActive": "The selected account number is inactive.",
 
   "dateOpened": "Date opened",
   "assignedToMe": "Assigned to me",