The use of a Phantom vs. a Regular BOM for a sub-assembly defines the manufacturing process. Let’s say you have part A made out of B, C, and D. Part D is a sub-assembly made out of E, F, and G. If part D is defined as a Regular BOM, then when a Manufacturing Order (MO) is issued to make A, it calls for parts B, C, and D, assuming that D will be pulled from stock. D would still have to be made using an MO calling for parts E, F, and G.
If part D is defined as a Phantom BOM, then when the MO is issued to make A, the MO calls for parts B, C, E, F, and G. The MO "blows through" part D and calls out its components. If part D is defined as a Phantom BOM, it is possible to manufacture part D to sell, for example, as replacement parts. The MO for part A will always blow through the phantom BOMs.
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