How to Enable SharePoint Versioning

Open SharePoint web Site and click the folder on the Quick Launch, for example Project Documents.

4. Do one of the following:

For list items, to specify that versions are tracked, click Create a version each time you edit an item in a list in the Item Version History section.
For files, to specify that only one type of version is tracked, click Create major versions in the Document Version History section.
For files, to specify that both major and minor versions are tracked, click Create major and minor (draft) versions in the Document Version History section.

5. Click OK.