What does “Inactive (customer, vendor or item)” mean in bookkeeping?

Inactive (customer, vendor or item) (also called Make inactive): A customer, vendor, product or service that's hidden from lists and forms but not deleted. Its past transactions stay in the books. QuickBooks Online uses this instead of deleting names that have history, and you can make them active again.

ExampleMaking a duplicate vendor, Bean Supply Company, inactive so bills only go to Bean Supply Co.