Hello,

When an approver rejects a Requested Item (RITM) in ServiceNow, two out-of-the-box business rules work together to automatically set the state to "Closed Incomplete":

1. Reject Approval on Closed Incomplete - This business rule triggers when an approval is rejected, it checks for the related RITM tasks, if no tasks found, automatically changing the RITM's state to "Closed Incomplete" 
   

2. Close Parent if Required - This business rule ensures proper state propagation throughout the request hierarchy. When child tasks are closed (due to rejection), this rule evaluates if the parent RITM should also be closed, maintaining consistency in the request fulfillment process.