Xref not found error
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How to solve the error
If you have received the drawing from a customer, then you should be aware that important information may be missing from the drawing. You should ask your customer to take one of two actions.
1) Ask them to "etransmit" the drawing to you. This command, which you will find under the file pull down menu, will send you all of the relevant files which you need to view the customer's drawing correctly. Including any attched Xref's.
2) Somtimes Xref's have been set up by someone who has since left the company and the remaining staff are not sure how to handle Xref's. An alternative solution in these circumstances is to ask your customer to "bind" the Xref's using Xref manager. This has the effect of combining the Xref information with the drawing.
Hope this helps.
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How Xref's work in Autocad
You can attach an Xref to an Autocad drawing by using the Xref manager. This means that when you open a drawing or reload an Xref, that Autocad data is brought in from another drawing. The cause of the Xref not found error is that this data is missing or it's location has changed.
There are many benefits to this process. Several Autocad users can work on a project at the same time. The attcahed data is not added to the original drawing so that it's size is smaller.