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Might be you were always using "Goods" as Line Type.
Observe the following..might be helpful to you.
Goods: With this Line Type, only Milestone Pay Items can be used.
Fixed Price Services: With this Line Type, all three pay items can be used – Rate, Lumpsum and Milestone
Fixed Price Temp Labor: Again, all three pay items can be used – Rate, Lumpsum and Milestone.
Yes, that is correct. Thanks a lot