Revalidating an Invoice after a Hold is Released

Hello,

We've discovered that if an invoice is placed on hold and the hold is subsequently released, if the project being charged was closed in the interim, the invoice is able to be validated without error.  We're thinking that the invoice should not validate and that an error should appear, alerting the user that the project is no longer valid and prompting them to enter a new project.

Has anyone else experienced this situation?  Is this expected Oracle functionality?  

Thanks,

Debby