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Cross Ref (P4104) Replacement Items for BOMs

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I am trying to understand the correct way of using P4104 (cross refs) with "replacement" items. Specifically I am trying to understand how / when I should be replacing the old item with the new in my BOMs.

As toy example, initially we have a BOM defined for a product SKU-FINISHED.
That BOM has one input:
  • SKU-INPUT-A

We then use P4104 to define a cross ref “replacement” for SKU-INPUT-A: SKU-INPUT-B and we set the stocking type for SKU-INPUT-A to be `U` (use up).

I am trying to...

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