How to service a sub component in depot repair?

Hi,

I am having a situation where customer can return a sub component for repair. Business user wants to ability to use this component as below:

• Receive it as item to be repaired, repair it and ship it back to customer.
• Use as component during repair activity if top level items comes for Repair. Customer will be charged for component as bill only.

As this is sub component, service billing type is set as Material charge at Item level. Now when i am trying to create service order /RMA order, creation of logistic failed as there was no billing type Material charge was assigned to 'Return for Repair'