Inventory Item record - Material Status Control - Default serial status

Folks,

Quick question that hopefully somebody can answer.

Looking at an Inventory item record in Master Items there is an attribute on the Inventory tab called 'Default Serial Status'.. Am I right in saying that this attribute ONLY comes into play when the item is received?

I have a client that has lot 1234 for item ABCD which is serialised.. The client has moved the status of the serial numbers within this lot to 'Suspended'. The client then created a REWORK discrete job for item ABCD using lot 1234 as an input lot and upon completion was expecting the new lot serial status to be 'Active' as this is the Default Serial status on the item master record for item ABCD..