I have created another PBI state named Closed, which is for a PBI that has not been completed as per DoD. The process is the PBI is copied [to maintain audit trail] into the backlog for prioritisation, re-estimation/evaluation of remaining work, etc and the not-completed PBI is set as closed. This allows the SM and PO to monitor any committment slippage.
In the process config I have the closed state mapped to In Progress, which keeps the Closed PBI in the main backlog. Is there a way to remove it from the backlog? It seems that only Done PBI's are removed.
Process Template is VS SCRUM 2013.2
First, if you map Closed to In Progress then it will always be in the backlog.
Second, what you are trying to do is really dysfunctional. You should place the PBI back in Approved and put it back on the backlog.
You can create a query with State=Approved AND State was ever Commited which will give you a list of overcomitted work.