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AX 2012 - Segments & Sub-segment filtering - Sales & Marketing Module

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When selecting segments and sub-segments on a customer from the "Sales demographics" tab of the customer form, the sub-segments are not filtered based on the selected segment (all sub-segments are showing), regardless of the fact that the hierarchy has been setup in the "Sales & Marketing" module.

This appears to be a bug or is there something I am missing here? I have checked the relations on the CustTable and they appear to be setup correctly.

If someone could please shed some light on the subject, it would be greatly appreciated.


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