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MRP & BOM Explosion - Material Types

Hi

I've material M1 with procurement type F and sp proc key 40 and material type is HAWA(Trading Goods). I've a valid BOM assigned to it and I've all the config relevant for MRP and BOM is carried out - atleast I think so. My problem is that when I run MRP for this material M1, I do not get the BOM exploded? I'm told that (I'm not sure though..) BOM explosion is only possible for FERTs and HALBs and also the procumkent type E or X - is this true?? Can you pl.confirm if this is correct? If yes, How should I plan for HAWA and it's components? During MD02 - I'm selecting planning mode as '2' (re-explode BOM & Routing). I do have a valid prod version too - is this a must?

Any help is greatly appreciated.

thanks a lot

BE.

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