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Àssest Hierarchy

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Create Asset hierarchy using "Use BOM for initial hierarchy" check box

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I am trying to see if the asset hierarchy can be created if I enable the check box Use BOM for initial hierarchy. Steps I have followed are below

1. Create Items and create structure in PIM

2.receive Items using miscellaneous receipt transaction

3.check if the Installed Base record created for the items

4.Create asset manually in Installed Base with new location/ serial number

5.enable check box to create hierarchy

6.check if the asset hierarchy created or not , this is not created. What am I missing and what are rules to create asset hierarchy

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