If a Reverse Production Item has only one Component Item, the cost of the Component Item is calculated by dividing the Average Cost of a single unit of the Reverse Production Item by the number in the Qty field of the Component Item.
If a Reverse Production Item has multiple Component Items, the cost of each of the Component Items is initially set to its Average Cost.
If the Total Cost of the multiple Components Items does not equal the Average Cost of the Reverse Production Item, the Component Item costs are updated by dividing the Average Cost of the Reverse Production Item proportionately into the Component Items.
Adjustments to the Components Items' Last Cost and Average Cost are only completed if the Update Last Cost and/or Update Average Cost Item Template parameters are enabled (ON).
In either case, the cost of each Component Item is rounded to an amount that is as close as possible to the Average Cost of the Reverse Production Item.
See:
Production Module Contents