All recognitions for a peer-to-peer fundraiser are created in an unvalidated state in GiveGab Enterprise's data. Some organizations may have business rules that require an Admin in Enterprise to 'flag' recognitions as validated as a separate task. Typically validation means that an organization has confirmed the deposit of the $ amount of the recognition in the expected bank account. This deposit typically happens 'offline' outside of Enterprise's processing.
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If you're organization's business rules do not require the tracking of unvalidated recognition amounts vs validated amounts then you do not need to use the validation flag.