Raise defect 
Internal review 
        <---submit to deceloper--->
         post poned         rejected
             
                   accepted
                    fixed
                 <--retest-->

            yes             No --------->go to same process
      
                   closed

the following steps we follow in the bug life cycle.

1)execute the test, compare the actual result with the 
documented expected result.if any discepancy exist, log the 
discrepancy with the status as NEW.

2)tester/testleader(depends upon the company) OPEN  that 
one and review with the developer about discrepancy.

3)if it truly a discrepancy developer rectify that one and 
update its status to FIXED.

4)it is routed back to the tester for regression testing

5)tester retest that one and compare the actual result with 
the expected result.both are same he close the defect and 
update its status to CLOSED.

6)if it is not corrected tester assign it to the developer 
and update its status to RE-OPEN.

The following are the phases of a Bug/Defect Life cycle-
1)Opening of new bug
2)Acceptance of the bug
3)Pending state
4)Fixed stage
5)Closd Stage
6)Re-open stage