This area allows you to Make order statuses, set whether a status notifies you and the customer, Allows you to customize the invoice sent to the customer and more... 

See screenshot:

Here is a breakdown of the items listed in the screenshot:

"Notify Managers of Order Assignments" will notify your sub-account users when you have assigned them an order.

"Export One Line Per Item" it puts each item in a new row, instead of one line per-order

"Hide Order Status from Notifications" this will supress the status of the order when a notification goes out.

"Send a Copy of Customer Invoice to Owner" will copy the email address that is located in the "My profile" area a copy of the customers invoice

"Attach CSV to Owner Notification Emails" will include a CSV of the order in the owners email. (owner is determined by the email used in the "my profile" area under Dashnoard)

"Attach CSV to Vendor Notification Emails" will include a CSV of the order in the Vendors email. (Vendor Email is setup in the "shipping sources" area when editing a specific vendor)

By Default there are 5 statuses made "In progress", "New", "Declined", "Cancelled", and "Deleted".  You can determine if you or the client gets these notifications by checking the corresponding box.  The "New" status is greyed out and you can not change whether it notifies you, or the customer.(it DOES by default)

You can enable and disable "Item level Statuses".  

What this feature does is let you create a status for each item in an order.  So if you are able to ship some of the order, and some items are back ordered.  You can specify which items shipped and which are still back ordered.

In this area you can customize the look of the Invoice that your customers will receive.

You can choose from the drop down list which invoice you will customize. 

You can also customize the invoices that you will receive when a customer places an order.  Or the notice the vendor gets. (if you have a Vendor email address specified in the "Shipping Sources" area.

Here is the list of variables that can be used when customizing the invoices:

%store_url% - a link to the site
%number% - order number
%status% - order status
%date% - order date
%buyer_name%

Variable names must be written in lower case. %buyer_name%, not %Buyer_Name%