Mate references on sub-assemblies

Hello,

I am working on a project and am having problems trying to use mate references in sub-assemblies.

Here is what I am doing:

If I take two parts, each with matching mate references and put them both into an assembly, they snap together just fine.  As I would expect.

But if I take an assembly (lets call it sub-assembly A) with a mate references and another assembly (sub-assembly B) with matching mate references and attempt to put them both into a higher level assembly they will not mate automatically.

Am I trying to do something that just isn't possible or am I doing it wrong?

Thanks for your help.

-Brian Tullio

SolidworksAssemblies