PIR Reduction in strategy 40

SAP help says strategy 40 will have both PIR consumption (when SO created) and reduction (when goods issued to SO)

but in planning strategy standard configuration req. reduction indicator is unchecked (right side bottom corner)

if req reduct.indicator is unchecked, how is sap help saying that requirement reduction happens in 40?  are these both different settings?

Thx in advance

Swati