MRP Type X0 but No BOM explosion

Good Day

I have an issue within ECC 6.0 relating to Manufactured Materials using MRP type X0.

Currentlywe have a multi level BOM consisting of three levels. Material A = PD and consumes Material B. Material B = X0 and consumes Material C. Material C = PD and is the raw material.

Although we're not actually planning Material B in APO, we still want the BOM to be exploded during the MRP run and dependant demand placed upon Material C. At present I'm not seeing this occur within ECC. Demand is placed on Material B from Material A but there is no demand placed on Material C from Material B (Doesn't look like the BOM is exploded). Based on all the information I could get my hands on, X0 provides this functionality. MRP should not plan the X0 material but should still explode it's BOM for lower level planning. Whats not clear is whether or not this will work solely within ECC. Does anyone have similar experience with this issue? Will the functionality only work if the BOM is exploded within APO?

I've looked at OSS note 371405 which describes the problem but it's only valid for a much older version of SAP.