Can I use OUTPUT from an UPDATE in an INSERT? I want to add a record to my app's "SystemSettings" table and set the PK value using the value from an UPDATE.  The PK value comes from the "TS_LASTIDS" table which contains the maximum PK value for each table in this application (MicroFocus SBM).  I need to increment the "TS_LASTID" column in that table and use the new value as the PK when INSERTING a new record into the "SystemSettings" table.

Insert Into
   ts_SystemSettings ( ts_Id, ts_Name, ts_LongValue)

Values (
   ( -- ******************** This subquery updates the PK in TS_LASTIDS and outputs the new value
      Update
         ts_LastIds
      Set
         ts_LastId=ts_LastId+1
      Output
         INSERTED.ts_LastId
      Where
         ts_Name = 'SystemSettings'
   ) ,  -- ******************** 
   'NSLastChangeId' ,
   1 ,
) ;


I can't figure out the syntax.  This is MS SQL server 2012.
Here is an example of using OUTPUT...INTO

--demo setup
drop table if exists InsertTest;
Create Table InsertTest (id int);

drop table if exists UpdateTest;
Create Table UpdateTest (id int);
insert into UpdateTest(id) values(1),(2);

--solution
UPDATE UpdateTest
SET id = id + 1
OUTPUT INSERTED.id
INTO InsertTest;

--verify results of insert
select * from InsertTest




ID
2
3