The WIPTransaction rule defines a status code (or several) that you want to pick up during Gendata processing. Once loaded, then you may optionally have rules that make additional changes to the transaction before any batching rules kick in to route the recipients where you want them.
Now, if you want your batch (BCH) files sorted before running GenPrint, you can accomplish this manually, between the GenData and GenPrint steps using your favorite sort utility. Or, depending upon your version, I believe there is a SortBatches rule that can be added to the top-level rules in the AFGJOB that will do simple sorts on the BCH files as a final step in the GenData process.
Actually we did accomplish by going by the approach # 2 as I have listed in my original post.
We had a Clustered Index declared on the Column. The records are retrieved in a sorted order.
Thanks for your time.