There is an option to include packaging products when assigning products from Master Data to your Channel of choice.

What it means...

If you have a retailer that wants your item information at several different packaging levels, for example as an "Each" (one sellable item) and also as a "Case" of "Eaches" and then maybe also as a "Pallet" of cases of products, you can prescribe that setup in master Data and pass it on to the channel.
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​When to select or deselect...

(Common scenario)

If you don't have packaging related information in Master Data, you can ignore this setting and leave it checked.

(Advanced scenario)

If you do have related packaging information and you don't want to pass that to the channel then de-select it.

If you do have related packaging information and you do want to pass that to the channel then leave it selected.