It is of the same unit class as the template unit, so it appears as a choice in that formation at the appropriate date. The template unit determines the unit class of the slot in the formation - any other units may replace it, if of the same unit class.
from the formations tab help of mobhack help, right at the very start:
Quote:
Formation editing causes the most problems in OOB editing.
A formation is a list of 1 to 10 unit templates or formation pointers.
A unit template is one of the things on the units page, funnily enough!. A unit's number from the units page is entered as the template unit for that slot in the formation. The first slot in any formation must be a unit, slots 2 to 9 may be formation pointers in company type formations.
It is important to realise that the unit placed in a formation is a template, not necessarily a representation of that specific unit. The formation pick code will use the Unit Class of the unit placed as a template as its search key when replacing that template with possible units of the exact same class available at that specific battle date. More specifics about template units will be mentioned later.
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The bold bit is the important bit