If you want to enable the In-House Production for a Material which should be checked in the Material Overview, then the Material should be assigned to a Production Model.
This can be performed as follows,
1. Go to Planning and Production Master Data work center.
2. Select New production Model from Common Tasks.
3. Complete the Production Model for the respective Product.
This will enable the In-House Production for the Material.
For any Material,if the Procurement Type in Planning tab is selected as In-house Production. This will enable the Material to be available for Production Model. If the user create a Production Model for this Material in the Planning and production Master Data work center then the check box for In-house Production automatically get selected for this Material.
You can also refer to the knowledge base document 1568583 - A Material is shown as "Purchased" in material view but it is displayed as "In house Production" in tab "Planning" of that material.
KBA , SRD-SRM-PRP , Product Portfolio , How To