About usage of phantom item inventory

A phantom is a subassembly that is assembled only to be included in another assembly. A phantom represents an item that is physically built, but not stocked, before being used in the next step or level of manufacturing. An item is a phantom when bit4 of the FLAGS column is enabled in the item’s MATL record. When you run the Planner, the system bypasses the phantom item and creates planned orders only for the material components in the phantom item's current bill of material.

The system plans phantom items differently depending on several conditions.