1. BOM with manufacturing/kit type for MTO product 
Create or use existed BOM > adjust source location for component 

2. Create SO with MTO product (already setup among) > then check Production Order and Manufacturing 

3. Open Manufacturing and transfer to check source location of component 
Noted: check 2 or 3 steps in manufacture to get 2 or 3 step in transfer 

4. Create production order > create MO from that> check source location 

5. BOM with subcontracting type for MTO product 

6. Create Purchase order > confirm > check subcontract lines

Noted: to check subcontract lines from PO you should install module fal_mrp_production_order