sub component showing in MD04, deleted in PO

Hello experts,

We have a repair process whereby we replace the item with a non-valuated item.  MD04 plans the non-valuated item.  We have a situation where the item was deleted on the PO, yet it continues to show in the MRP run.  It will not go away.  We changed the lot size to EX and it still shows.

Any idea why and how do we get rid of the item from MD04?

Thank you.