Three-state workflow tracks the status of a list item through three states (phases). It can be used to manage business processes that require organizations to track a high volume of issues or items, such as customer support issues, sales leads, or project tasks. For example, the three states for a project task could be, Not Started, In Progress, and Finished.
Before you can use a Three-state workflow, you must set up a list to use the workflow. This list must contain the items that you plan to track or manage by using the workflow. The Issue Tracking list template works with the Three-state workflow. However, you can also create a custom list to use with these workflows.
i. Create an Issue-Tracking List for use with a Three-state Workflow
1. Go to [Site Actions] -> Click on [View All Site Content].
2. Click [Create].
3. In the [Create] dialog box, click [Issue Tracking], and type a name for the list. The list name is required.
4. If you want to provide a description for the list or specify if a link to the list is displayed in the Quick Launch, the default is yes, click [More Options]. Otherwise, you can click [Create].
ii. Create a Custom List for use with a Three-state workflow
If you want to create a custom list for use with a Three-state workflow, you must add at least one Choice column that contains at least three state values that the workflow will track.
1. Go [Site Actions] -> Click [View All Site Content]. Click [Create]
2. Click [Custom List], and type a name for the list and the rest of the information is optional.
3. Click [Create] when finished.