Magento Open Source, 1.9.x
Custom Order Status

In addition to the preset order status values, you can create custom order status values of your own, assign order statuses to order states, and set a default order status for order states. For example, you might need a custom order status for orders, such as “packaging” or “backordered,” or for a status that is specific to your needs. You can create a descriptive name for the custom status, and then assign it to the associated order state in the order processing workflow.

Only the default custom order status values are applied in the order management workflow. The custom status values that are not set as default are available only in the comments section in the order view in the Admin .

Order Statuses