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Dynamic Modification Rule

I am using a DM rule. the rule is assigned to Inspection plan at header level & the modification is at lot creation.

there are two stages in the rule

Stage one >> Inspection 2 Lots & next stage is stage 2

Stage two >> Skip 20 lots & next stage is stage 1 & If rejected >>stage one.

The problem I am facing is that there is no stage change after rejecting a skip lot. By rule it has to go to stage one of Inspection but it is not going to that stage.

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