OSP Item has Inventory Item Flag as NO but Product Type on PO Line is Goods

Summary:
OSP Item has Inventory Item Flag as NO but Product Type on PO Line is Goods

Content (please ensure you mask any confidential information):

In the PIM setup, the OSP Item has Inventory Item flag = NO.

However, on the PO Schedule, the Product type still defaults to Goods.

Ideally, the Product type on PO Schedule should be Service if the Inventory Item flag has been setup as NO.

Is there any other setup that affects the Product type defaulting?

Version (include the version you are using, if applicable):
25A

Code Snippet (add any code snippets that support your topic, if applicable):