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In our Jira, we have the standard Resolved, Unresolved Resolution values as well as some custom values such as Duplicated, Done and Won't Do. I see Jira supports some reports based on the Resolution fields such as Created vs Resolved, Average Age Report etc etc.
If I want to use Created vs Resolved Report and I set one of my tickets to a custom value say Resolution = Won't Do, how does this going to affect the report?
So can I conclude that Jira Reports are built upon 2 Resolution States - Unresolved (default one when you create a ticket) and everything else like Resolved, Done, Duplicate which is considered as "Resolved" in the reports?
Correct - the field is empty (unresolved) or has a value (resolved, whatever the display name of the option is. Even if you use a name like "unresolved", it is resolved because it is not empty)
To use the vanilla reports and not losing the diferenciation between resolutions you could use a simple workaround and do something like differenciate by status name... create as many final statuses as resolutions you want to use but only set the actual resolutions for those statuses you want to count as "resolved".
Of course you could create more elaborated reports but to do so within jira itself I'm afraid you'll need to use some of the pluggins/apps available in the marketplace.
You could also create "external" reports by exporting your data to other tools (as simple as copy/paste in a calc sheet, as elaborated as connecting a BI tool to your jira instance).
Just some ideas. Hope it helps