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In Trackplus, a workflow defines who (which role) can change an issue from one status to another one.
For example, only the role "manager" may be permitted to close issues of type "mile stone". Or, only the role "tester" may be permitted to close an issue.
Workflows are specific for each issue type and project type. For example, the workflow graph for mile stones may be rather simple ("not passed", "passed"), while the workflow for a problem report may be rather complex ("opened", "analyzed", "assigned", "implemented", "rejected", "closed", and so on). You can define the name of the statuses, so you could also name them "order received", "order approved", "order issued", "invoice paid", or whatever suits your process.
You configure workflows interactively using the Trackplus user interface. You can always have a graphical visualization of your workflows at your browser interface.