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The shipping record has 4 statuses. These are updated automatically. The current status is in the header. A "breadcrumb" of the status is visible in the sub header section of the layout.
New - The ship record is new and requires additional data entry.
Awaiting Shipment - The ship record is in a ready state. The default behavior is that a tracking number is required in order for the shipment to be moved from a status of New to Awaiting Shipment.
Shipped - The shipment has left your facility. Clicking the Release Shipment button at the bottom of the layout will set this status.
Canceled - The shipment has been canceled. Note that if you restock the items, you will need to manually update those item quantities.