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Have you tried
IF [PO number]='' OR [Closed]<>'X' THEN "Open"
Maybe you have empty strings and not null values.
Also , ISNULL already returns a boolean so you can omit the = True
IF ISNULL([PO number])=True can be replaced by IF ISNULL([PO number])
Thanks a lot Michel, I used your suggestion and slightly modified the formula and it works now!
Here's what I used:
IF [PO number]<>"" OR [Closed]="X" THEN "Closed"