Direct procurment indicator in production order for phantom item

[johnsplit123]

Hi Experts,

I found in a production order, there is a "1" maintained under "direct procurement indicator " which means "external procurement" for an item, and a purchase requisition is generated for it.

Item is phantom item (Special Proc key 50, Proc type E). Even in header BOM, it is marked as phantom.

But for some reason, I do not see phantom check in component view of production order and direct procurement indicator.

Few add info - If I check similar materials, the only difference is I have maintained purchasing group, but if I remove it and do Read PP master data, it does not work, just I see error message in log - No Valid bill of material could be found for the material ____. But there is a BOM maintained for this item.

Please help to understand why I see a "1" maintained under "direct procurement indicator" for phantom item and why no check for phantom in production order.

Thank you in advance!