Now I know this sounds a little crazy, but it is TRUE. It is a common mistake to think that when the SOLIDWORKS search routine includes a “Referenced Documents” folder, that all the sub-folders of that location will be included in the search. It is reasonable to think that we would all benefit from an Enhancement Request that would include sub-folders. In fact, we would not benefit and let me tell you why.
The purpose of the Referenced Documents folder list is to have a “prefix” in the case of moving files such as entire assemblies or the entire Toolbox. The SW Knowledge Base gives a great example of this.
An assembly is in “C:workingmain assy”
Its parts are in “C:workingmain assypartref”
If the entire directory is moved to “E:newdata”, add “E:newdata” as a reference path, SOLIDWORKS will search in the “workingmain assy” folder path underneath “E:newdata”
If you are moving one component to a sub folder, then add that folder manually to the “Referenced Documents” list. Referenced documents are not searched for in every folder listed for every part because performance would be drastically affected. SOLIDWORKS would have to search every sub folder, every file, etc….