Hi Rubab,
Thanks for the Information.
This will restrict for Material Planning and Creation of PR. But you still have the reservation in place for the component in the work order. Also if the component item is set to "Never", then there is no way it will be reserved for the order. You can check the stock in MMBE.
In case, if the Never is changed to Immi and it was saved, no way you can change back.
When i did a testing, using not relevant for Material planning, this might be used, if the Material is related to MRP and which creates PR if the stock goes minimum. I guess this was the functionality of this field.
Regards
Terence