In my current company there isn\'t clear understanding between the test and development teams as to how severe a bug should be? There are arguments which go back and forth to re
Use priority levels that deliberately have nothing to do with severity or impact, and describe only the conceptual position of the bug in the schedule. This field will determine which bugs get worked on, so it needs to be very clear that the facts of the bug aren't open for negotiation.
Use severity levels that deliberately have concrete, verifiable definitions, that have nothing to do with scheduling or priority. I've worked successfully with the severity definitions used by the Debian BTS, generalised to apply to programming projects in general.
That way, the severity is much more a matter of verifiable fact, independent of a statement of priority. The priority is then free to be tweaked up and down by negotiation or whatever, without affecting the factual information in the severity field.
Attempting to conflate both “severity” and “priority” into a single field will lead to soul-draining arguments and wasted time. The bug reporter needs a firm guide of fact to determine how “bad” the bug is, and this needs to be easily agreed on by independent parties. The priority, on the other hand, is the correct target for negotiation and scheduling games.