RFx status is Awaiting Approval - needed PUBLISH

Hello SAPions,
We are in SRM7.0 ehp4. PPS.
Issue: When Publishing Rfx, status is going to Awaiting Approval rather than PUBLISHED status.
I have configured the system to create Rfx and when I try to PUBLISH them, they are going to Awaiting Approval.
First I activated the BC Sets for automatic approval. When this didnt work, We activated the WS40000014 workflow.
Can someone throw some light on What is that we are missing?
-Ashwin.

checked above notes and are not applicable to us.
The following data is downloaded from the Approval Tab of RFX(Approval Process Data:Download as XML)
<?xml version="1.0" ?>
- <asx:abap xmlns:asx="http://www.sap.com/abapxml" version="1.0">
- <asx:values>
- <PROCESS_INFO>
  <WF_VERSION>0200</WF_VERSION>
  <PROC_STATUS>INIT</PROC_STATUS>
  <IS_DYNAMIC_WORKFLOW>X</IS_DYNAMIC_WORKFLOW>
  <HAS_WORKFLOW_ERROR />
- <PROC_DETAIL_LIST>
- <_-SAPSRM_-S_PDO_WF_PROC_DETAIL>
  <TIME_INDICATOR>F</TIME_INDICATOR>
- <PROC_LEVEL_LIST>
- <_-SAPSRM_-S_PDO_WF_PROC_LEVEL>
  <LEVEL_GUID>TEf8cMRqD6DhAAAACoDESg==</LEVEL_GUID>
  <LEVEL_SEQNR>999</LEVEL_SEQNR>
  <LEVEL_TYPE>S</LEVEL_TYPE>
  <TEMPLATE_ID>WS40000025</TEMPLATE_ID>
  <APPROVAL_TASK_ID>TS40007988</APPROVAL_TASK_ID>
  <DECISION_TYPE>1</DECISION_TYPE>
  <LEVEL_STATUS>VALID</LEVEL_STATUS>
  <LEVEL_DECISION_STATUS>OPEN</LEVEL_DECISION_STATUS>
  <IS_ADHOC_LEVEL />
  <RESOLVER_NAME>SYSTEM</RESOLVER_NAME>
  <GENERATED_GUID>TEfNZ8R2D6HhAAAACoDESg==</GENERATED_GUID>
  <DOCUMENT_GUID>TEf8VsRqD6DhAAAACoDESg==</DOCUMENT_GUID>
  <DECISIONSET_ITEMSTATUS_MAP />
- <AGENTS_BY_KEY>
- <_-SAPSRM_-S_PDO_WF_PROC_AGENT_BK>
  <WORKITEM_ID>000000000000</WORKITEM_ID>
  <LEADING_OBJECT_GUID>TEfNZsR2D6HhAAAACoDESg==</LEADING_OBJECT_GUID>
- <AGENT_LIST>
- <_-SAPSRM_-S_PDO_WF_PROC_AGENT>
  <AGENT_ID>WF-BATCH</AGENT_ID>
  <AGENT_TYPE>RA</AGENT_TYPE>
  <CREATED_BY />
  <CREATED_AT>0</CREATED_AT>
  <REVIEWER_OID />
  <AGENT_OT>US</AGENT_OT>
  <AGENT_FULL_NAME />
  </_-SAPSRM_-S_PDO_WF_PROC_AGENT>
  </AGENT_LIST>
  </_-SAPSRM_-S_PDO_WF_PROC_AGENT_BK>
  </AGENTS_BY_KEY>
  <WORKITEM_LIST />
- <DECISIONSETS>
- <_-SAPSRM_-S_WF_DECISIONSET_STAT>
  <DECISIONSET_GUID>TEfNZsR2D6HhAAAACoDESg==</DECISIONSET_GUID>
  <RESOLVER_NAME>SYSTEM</RESOLVER_NAME>
  <STATUS>OPEN</STATUS>
  </_-SAPSRM_-S_WF_DECISIONSET_STAT>
  </DECISIONSETS>
  </_-SAPSRM_-S_PDO_WF_PROC_LEVEL>
  </PROC_LEVEL_LIST>
  <WORKITEM_LIST />
  <AGENT_LIST />
  <AGENTS_BY_KEY />
  </_-SAPSRM_-S_PDO_WF_PROC_DETAIL>
  </PROC_DETAIL_LIST>
  </PROCESS_INFO>
  </asx:values>
  </asx:abap>
can someone suggest something?
-Ashwin.

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