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Entity creation is now available in sandbox by default. You can create entities and simulate the entity status, enabling you to test entity flows end-to-end in a fully controlled environment.

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Possible values of entity status

Entity statusDescription
pendingThe entity is pending review and requires action from the merchant.
approvedThe entity has been approved and is ready to be used for creating on-behalf-of transactions.
rejectedThe entity has been rejected and cannot be used to create on-behalf-of transactions.
According to your entity status, you can test you downstream dependednt payout and collect integrations that depend on your entity status. This can be done by navigating to Sandbox dashboard -> Entities -> Entity Detail Page -> Simulate Entity Review.