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Criteria for Reference status in Sales order

Summary:

Whenever sales order is revised then previous version status gets changed to reference? However we notified that for active verion also there is reference version is created?

Is there any setup which controls this behaviour?

Ex: SO - 1001 created and submitted ( Revision 1)
If the sales order is revisied and added a new line then revision 1 becomes reference and revision 2 should be in processiong status, when we checked we found that there is reference version for revision 2 also?


Expectation: Revision 2 should not be in reference

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