Select this option if you want the attached BOM lines to be automatically picking-list consumed when the journal is posted. ...

Select this option if you want the attached BOM lines to be automatically picking-list consumed when the journal is posted. By default, the field is selected if you selected Automatic BOM consumption in the journal, and if there is reporting for an operation with BOM lines. When the journal is posted, the system generates and posts a picking list journal with the calculated consumption. If the posting fails, the route consumption is still posted, but the picking list journal remains open. You can make changes manually before posting. If you want to set up consumption for the picking list journal, before posting route consumption, click Picking list, set up the dialog box, and then click OK. This creates the picking list journal, and you can now work in it until posting.
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