Component assignment

Hi guyz,
I have a simple question just for clarification.
Component A (proc type E in mat master) has three components B,C,D assigned to it in BOM. B,C,D have reference points. With CN33, I assign these components, to an activity. So the three components could be seen below this activity. Procurement type in all three comp is F i.e external procument.
I saw this example in IDES project T-20000. I was wondering as why should it be like that. Because, comp B,C,D will be procured externally and get consumed direclty in activity. There was no need for comp A with proc type E. 
MRP type in comp A is PD with strategy group 70. When MRP was run at project level, nothing happened to this material, i.e mat A. Comp B,C,D could be procured the purchase req because of external procurement F in mat master.
Am I missing some scenario or my understanding is correct.
Cheers
Sunny

Hi,
SAP has given two options to handle manufacturing materials.
1) BOM - Planned Order -- Production Order -- Final Item.
2) Assembly in Network.
The IDES T-20000 case is an example of 2nd point.
When you use case 2. It means that you are assembling in project network instead of in Production Order. In CN33 transaction if you click of the 'transfer Button" (3rd from left at the top), enter project def , header material (i.e. A) and reference point , then header is also transferred to project structure. Header will be transferred with negitive quantity and with black flush indicator flagged. All the child components (B,C,D) are transferred with +ve qnty. After you procure B,C,D issue them to the Network reservation. Now child componets are consumed. When you confirm the activity to which A is assigned , it will be posted to the WBS stock (if it is indiv material) else to plant stock (if it is collective material). The conversion of B,C,D to A , is mentioned in the internal activity , you can mention the work center , duration in which B,C,D are converted to A.
The above process is adopted when entire procurement, assembly and inventory is managed thru P.S.
Else you can assign header material (A) to network activity and run MRP, which will  create Planned Order for A and P.R for B,C,D.
So it is two options given by SAP.
Hope now it is clear.
Thanks
Saikishore.Ganga

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