The Inherited Element Types option is available only in the Diagrams module while creating configuration with Engineering as source.

Click the Browse button to open the window with all the inherited types or rather all the sub classes existing under Pump (which is the selected type). These have now been moved to the n-level of the tree and are listed in the grid. The classes listed here can be found in the Configuration module.

Select the classes in the Inherited Element Types window. The selected classes are shown in the text box as displayed above. This creates the configuration to include the inherited types.

The Inherited Element Types function supports parent-child configuration.

Below is an example of a configuration created as Nozzle with inherited types.

Below is an example of a configuration created as Pump with inherited types.

Running the above configuration, all the nozzles including the inherited types, if any, and assigned to the pump should be shown as child elements of Pump.