BOM Supply Type - How does it default ?

Can anyone please tell me how the Supply Type flag under Material Control tab on the BOM form is defaulted ? I have checked the profile BOM: WIP Default component type.
Scenario:
1.Created items:
TEST ATO 1 - Created with template - ATO model, Supply Type=Assembly Pull
TEST ATO 2 - Created with template - ATO model, Supply Type=Assembly Pull
2. Created BOM
TEST ATO 1
|--- TEST ATO 2
For TEST ATO 2, the supply type is being defaulted to 'Phantom' and not 'Assembly Pull'
Suggestions please ?

Sandeep Gandhi, Independent Consultant wrote:
It takes the supply type from the org item record.
Can you double check the supply type on org item?I am also seeing the same behaviour..
I did check at item level too..
Please advise
Thanks
Mahendra

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