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For instance, the Policy department writes an SOP for client intake. They put it in the policy folder. Someone from Intake copies that file to the Client Intake folder and uses that copy as their reference. (probably should not be allowed, but how can that be enforced?) There is a change in policy and the SOP is updated in the SOP folder. Client intake makes mistakes because they are still referring to the file that they copied.

I'd like a way for the SOP to either, update the file that was copied and moved, notify users that there is an update to the SOP, or instead of copying the SOP, the icon that the Client Intake people see would really be a link to the SOP file that the Policy team updates. I'm only working with Word documents, and as of now don't need it to work for any other content type.

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Can't you use the "Link to Document" content type ? This means you could have one copy of the SOP and then have a series of Links to it in your other libraries. I also blogged about this : http://www.collaboris.com/blogs/collaboris-blog/policy-management/2013/04/03/use-a-link-to-a-document-in-place-of-an-real-document-in-sharepoint#.UtH_3PTrwdU

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