I posted this initially in the reports section only to realize after that it probably wasn't the right place.
 
We started to try using the Features & Options area and whether or not the Option is selected at the time the order is entered, the Option is put on the S/O -- and no, mandatory is not selected under Feature Settings.
 
This could be a very useful "feature" of the software, but we can't seem to keep the option off of the SO.

I am not sure what you mean.  If an item is not selected, then it should not be added to the order.  Is there only one possible option and you are either selecting it or not?

heres an example of an F&O that lets you pick 1 item per option
 
 Parent Product Code: CLLD06005000000  LDUD 6in CL feed assembly       Type: A
 
 Level     Component       T  Description                     Qty Required    Opt Mnd Dup M/K Cst Std Par  Option Price  Option Code
---------- --------------- -  ------------------------------ ---------------- --- --- --- --- --- --- ---  ------------  -----------
.1         OP06LDUPROLL    O  06in LD upper roll option            1.00000000  N   Y   3
..2        CLLD06011010010 B  LD 06in standard upper               1.00000000  N   Y       M   N   Y   Y         0.0000
..2        CLLD06011011010 B  Polished upper roll 4-6 Ra           1.00000000              M   N   Y   Y         0.0000
..2        CLLD06011012010 B  LD 6in upper matte chrome roll       1.00000000  N           M   N   Y   Y         0.0000
..2        CLLD06011019000 B  LD 06in hollow upper roll            1.00000000  N           M   N   Y   Y         0.0000
..2        CLLD06011019001 B  LD 06in upper hollow matte           1.00000000  N           M   N   Y   Y         0.0000
..2        PFURL13001XS    A  6inLD UP roll Satin 230-280ra        1.00000000              M   N   Y   Y         0.0000
..2        PFURL12001XS    A  LD 6in hollow Satin 230-280ra        1.00000000              M   N   Y   Y         0.0000
..2        CLLD06011014000 B  LD 06in urethane upper roll          1.00000000  N           M   N   Y   Y         0.0000
..2        CLLD06011020000 B  Upper ring roll 1" w rings           1.00000000              M   N   Y   N         0.0000

heres a piece of the main bom so you can see the layout
 
Parent part: CLLD06005000000 LDUD 6in CL feed assembly
Type       : A                                                    ROHS Compliant:
 
Level       Component        Description                        Qty Required UM   T RC Scrap   Seq  RtNum  Reference            Lin
----------  ---------------  ------------------------------ ---------------- ---  - -- ------  ---  -----  -------------------- ---
.1          OP06LDUPROLL     06in LD upper roll option                  1.00 EA   O      0.00    0     0                          1
..2         CLLD06011010010  LD 06in standard upper                     1.00 EA   B      0.00    0     0                          1
..2         CLLD06011011010  Polished upper roll 4-6 Ra                 1.00 EA   B      0.00    0     0                          2
..2         CLLD06011012010  LD 6in upper matte chrome roll             1.00 EA   B      0.00    0     0                          2
..2         CLLD06011019000  LD 06in hollow upper roll                  1.00 EA   B      0.00    0     0                          3
..2         CLLD06011019001  LD 06in upper hollow matte                 1.00 EA   B      0.00    0     0                          4
..2         PFURL13001XS     6inLD UP roll Satin 230-280ra              1.00 EA   A      0.00    0     0                          5
..2         PFURL12001XS     LD 6in hollow Satin 230-280ra              1.00 EA   A      0.00    0     0                          6
..2         CLLD06011014000  LD 06in urethane upper roll                1.00 EA   B      0.00    0     0                          9
..2         CLLD06011020000  Upper ring roll 1" w rings                 1.00 EA   B      0.00    0     0                        100
 
.1          OP06LDLRROLL     06in LD lower roll option                  1.00 EA   O      0.00          0                          2
..2         CLLD06011000010  LD 06in standard lower                     1.00 EA   B      0.00    0     0                          1
..2         CLLD06011002000  LD 06in matte chrome lower                 1.00 EA   B      0.00    0     0                          2
..2         CLLD06011009000  LD 06in hollow lower roll                  1.00 EA   B      0.00    0     0                          3
..2         CLLD06011009001  LD 06in hollow lower matte                 1.00 EA   B      0.00    0     0                          4
..2         CLLD06011004000  LD 06in urethane lower roll                1.00 EA   B      0.00    0     0                          5
..2         PFLRL13001XS     6inLD Lo roll Satin 230-280ra              1.00 EA   A      0.00    0     0                          6
..2         PFLRL12001XS     LD 6in hollow Satin 230-280ra              1.00 EA   A      0.00    0     0                          7
 
.1          OP06LDUOENTRY    06in LD stock entry option                 1.00 EA   O      0.00          0                          3
..2         OP06LDPENCIL     Pencil roll option - Standard              1.00 EA   O      0.00    0     0                          1
..2         OP06LDCASCADE    Cascade roll option                        1.00 EA   O      0.00    0     0                          2
..2         OP06LDANTIBACK   Antibackup manual option                   1.00 EA   O      0.00    0     0                          3
..2         OP06LDAIRBACK    Antibackup air operated option             1.00 EA   O      0.00    0     0                          4
..2         OP06LDSCSG       SCSG option                                1.00 EA   O      0.00    0     0                          5
..2         OP06LDLGHSG      Light stock guide option                   1.00 EA   O      0.00    0     0                          6

 
The 1st two options let you select 1 each
 
the 3rd option lets you pick any or all
 
 
Hope this helps
 
J Dub

Thanks for the feedback and examples, but I don't have a problem with setting up the F & O.  On the contrary, it's been one of the easiest to understand and setup.   Unless I've REALLY gone down the wrong path.   However, I don't think so.  In starting out, I have ONE item with ONE option and if doesn't matter whether I check off the option or not, it still includes the option on the SO and the acknowledgments.
 
Something's not right, obviously.

Here's the BOM, pretty basic...
 
 
Parent part: DO250           DATA ACCESS KIT
Type       : K               DATA ACCESS UNIT AND CABLES
 
Level       Component        Description                         Qty Required  UM   T   Scrap  Seq  RtNum  Reference            Lin
----------  ---------------  ------------------------------  ----------------  ---  -  ------  ---  -----  -------------------- ---
.1          DO490            GT-01 AROMAT TOUCHSCREEN              1.00000000  EA   R    0.00    0     0                          1
                    Specs:  blanket order 10043- 15 LEFT
                    Vends:  V596       MINARIK CORPORATION       50044534DO
.1          DO491            AFC1500-GT-US AROMAT CABLE-10'        1.00000000  EA   R    0.00    0     0                          2
                    Specs:  blanket order 10043- 25 LEFT
                    Vends:  V596       MINARIK CORPORATION
.1          DO654            PHO-1834398  KGG-MC 1,5/7             1.00000000  EA   R    0.00    0     0                          3
                    Vends:  V605       NEW ENGLAND DRIVES & CONTR
.1          DO730            OUTER CABLE Grey - TO DAU -15'        1.00000000  EA   R    0.00    0     0                          4
                    Vends:  V772       NES                       CAB-GT01-OUT
.1          A.C.T.           AutoClose Timer feature               1.00000000  EA   O    0.00    0     0                          5
     

Quote from Lynn Pantic   on 10/30/06 at 08:07:41:

 
 
Well I guess that this would be an official request for change  
 
Since the item is a selling kit (type K), any suggestions on what type of part it should be to allow F & O to work AND have it be a sellable item?

F item will work, as far as F & O working correctly.  I am not sure if the item type matters on the financial side, or may be of consiquence on some of the reports you use.