Hi BS,
At parent level the heuristic will create pl.order (for example at demand location) and for intercompany components the heuristic will create STO (source location).
For example in the below screenshot al SKUs are finished goods. The parent is open in one of our location and the child's are external procurement (intercompany). So, for parent the heuristic will create a pl.order (procurement type is "In House Production") and for child's the heuristic after BOM explosion will create STO (procurement type of the components are "External Procurement").
Thanks.
Regards, Marius