1. In Contracts, be sure to close the contract if it's open.
2. Select Tasks, Unapprove Contract Items.
3. A warning box appears advising that all transactions in Accounts Receivable, Billing, Contracts, and Job Cost should be posted.
4. • If posting is necessary, click No, then post in the appropriate applications
   • If posting is unnecessary, click Yes
5. Enter the contract ID or click , select it from the list, and then click OK.
6. Select the contract item to be unapproved.
7. Click Unapprove.
8. Click OK, and then click Finish.
9. When the contract item is unapproved, the status changes back to Proposed. The contract item is now available to change.

 NOTE: If the unapproval fails, it generates a message with a reason. Refer to the Contracts Help topic "About unapproving contract items" for more information. 

How do I unapprove a contract item with change orders, billings or payments?