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Sales order status as "Overdue" yet We have a payment entry attached

I have a sales order that has status as overdue yet payment entry was done against this sales order.Once the full payment was done, i expected the sales order to change staus from Overdue to something like Closed.Also i have seen a section where you can manually close the sales order.Does this mean that a sales order cannot be closed once full payment is received and that the closure is a manual process?

Kindly assist.Thanks in advance.