As per SAP help for field under Material Dependant Objects - Customer Matl in CFM1 Tcode it says "VMI Customer Material in Integration Model Includes customer materials in your integration model by using the Customer-Material info record. Use If you set this indicator, the system creates the relevant customer materials as location products at the customer location. The system only transfers those materials to SAP APO that are part of the Customer-Material info record (transaction VD53) and correspond to the selection criteria entered under General Selection Options for Materials. For further restrictions you can also define customer material relevant criteria. Dependencies The plants and customers to which the materials belong also have to be transferred to SAP APO.
We have all the prerequisites settings /transfers done for this transfer but Products are not transferred /extended to customer location in APO by CIF.