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The shortage status on sales orders can be calculated in two ways, and the worst status is transferred to the sales order header.
This is what happens in the video
So first of all, you could run or calculate shortage order status report with different parameters on it. And this will recalculate for all sales orders and what it actually does is just running through these sales orders so if you took these sales orders one at a time, it will just take this sales order and run the calculate shortage status functionality like if you ran it from the sales order in here and this functionality basically calculates all the lines and then it transfers the worst status from the sales order line to the sales order header.
So the status field on the sales order header includes the same status as the lines and the lower you get on the list, the worst the status is.