Folder Data Card Variable inheritance

If you have a file card variable that is populated by a folder card variable, does this only happen when you create the file?

My application is that I am trying to manage our vendor data library. I have one directory for each vendor we use and then store relevant data there.  I have a variable that shows if the vendor has been approved by our QA department. This "QA Approved" variable is passed to the file data card by setting the default variable to the Folder Data Card Variable by the same name.

But what is happening is once the file is created in the directory when QA hasn't approved the vendor, it reads "Under Review". If I change the value in on the folder card to "Passed" the filecard still says "Under Review."

Did I miss a setting?

Thanks.

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