When you instantiate a material, a BOM is also created for the material. This BOM receives the default BOM status defined in Customizing. This also applies to order BOMs.

The default status in Customizing is for creating BOMs in dialog mode. It may not make sense to use the same status for instantiated materials or order BOMs.

If a material is instantiated, a BOM is also created for the material. The sales order on which it is based lets you define the status of the new BOM. If this enhancement is not activated, or the output parameter has no value, the default BOM status in Customizing is used.
Function/Program:

• EXIT_SAPLCEB1_003: Define BOM Status for Instantiated Materials