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This article outlines the steps to withdrawing an application within LRM.

With the upgrade to Dynamics 2016, this can now be handled in the Application Workflow Process ribbon. The application can be withdrawn by toggling the "Application Withdrawn" button to "Yes" and selecting "Next Stage."

  

This will move the application into a withdrawn status (in this case, it will be "In-Progress Withdrawn" as the decision is being made while the application is still in-progress).