@nichole Thanks for the response. So, the entity status does not get updated when Document status get updated on the Opportunity record? We noticed that when there is a new SO linked to an Opportunity, the document status changes to Closed Won but the Entity Status says "Active". So, I was wondering if this is by design or are we doing something wrong?

are you using estimates too?

Mostly, they are not creating Estimates on the Opportunity record. Only occasionally I see Estimates on Opportunity records. Our Sales reps create Estimate directly from the Customer record - so there is no connection between Estimates and Opportunities - that's another thing I am not sure if they are doing right. Is there any recommended flow for most business processes -> something like Opportunity -> Estimates -> then convert the Estimates to SO?

yes. then the creation of the SO from the quote will change oppty/estimate status to Closed Won/Booked or whatever language y'all use

Got it. I will check if that flow will work for us. Thanks again!