According to multiple sources, I have read that planned purchase orders could be generated for service items, if Stocked is TRUE at Item model group.
After testing in D365FO environment, I was not able to generate any planned orders.
Has this functionality changed in D365?
No, Service items bypass planning I believe. You would need to create it as a stocked item, but in the item model group do not track inventory!
This worked! Thanks for the help!