Formula lines and versioning
When you run master planning and produce batch orders, the line types of your formula lines will determine how your batch order and co-products and by-products will be handled. For instance, a formula line type of Item should be set when the item is a raw material or a semi-finished item that is picked from inventory or when the item is a service.
A Phantom line type is for when you want to explode lower-level formula items that are contained on formula lines.
When a batch order is estimated and the formula items are exploded, the component items are listed as formula lines on the batch order. Keep in mind that you can't select Phantom for a catch-weight item or for items where the production type is Co-product, By-product, or Planning item. The Pegged supply option is to create a batch order, production order, kanban, transfer order, or purchase order for the ingredient that's contained on the formula line. This related order is determined based on the default order settings and the production type of the ingredient and is created when you estimate the batch order.
You can set a formula line to a line type of Vendor if the production process for the product involves a subcontractor and you want to create a sub production or purchase order for the subcontractor. With these options for formula lines in mind, you'll need to consider that the changes that you make to a formula or formula version can and will have cascading effects to your batch orders. You can manually select a formula version when you create a batch order, but as you continue through the module, think about how the changes to your formulas might affect your batch order processing.