The approval status is used as a control mechanism to prevent orders that are not paid or without payment terms being shipped. In order to dispatch an order, it must be “approved” in the system.
For example, if you put an order on invoice terms, you can manually approve it to be paid later.
Scroll to the bottom of the order and under Pay Later, apply payment terms (eg: due 7 days from date of invoice) and click the Approve button to approve for processing.
Orders that are paid with the total balance will automatically be approved.