What is your formula for setting the status on tasks/projects/etc?

Here is how the system controls this...

First, understand what this is looking at. The status is based on Work (Planned Effort), Actual Effort, % Completed and Duration. For example, lets say you have a work item (Project, Milestone, task, etc) with a duration of 10 days and Work of 20 hours. The system will expect a percentage to be completed as the work item nears completion.

In this scenario, 20 hours will be spread over 10 days or 2hr per day is the "Expected Effort". The system technically uses a percentage to verify. The calculation is below...

<Actual Effort> DIVIDED BY <Work> MULTIPLIED BY 100 = <% Completed>

This calculation is used to define status...

On Track = Meets or exceeds the expected effort (10% per day in the above scenario)

At Risk = Does NOT meet  the Expected Effort (i.e. after one day, 2 hours of Effort have not been submitted)

Off Track = Due Date/End Date has been reached and work item has not met Expected Effort

Very helpful.  Thanks.

Boris' explanation below was very helpful.  Where in the user manual can i find this detailed out?  I'd like to save that area as a favorite (assuming i can).

Is this logic still valid and can it be customized?

Still valid, cannot be customized, but you can create your own status fields that can be customized any way you'd like.