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I want to setup document versions like this:

Everytime I edit a document the version has to change and if this possible I want to turn it back to a previous version if this is needed.

Can you provide me the steps?

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up vote 0 down vote accepted

Go to library settings from the ribbon. You should see an option for "Version Settings". Select "Create minor and major versions". You might also want to turn on "Require Checkout".

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