Package Unit Cost Inheritance and Calculation

General

1. If the total cost of all source packages > $0, Flourish uses that total to calculate the unit cost for the newly created package.
2. If the total cost of all source packages = $0, Flourish defaults to the ‘Standard’ Unit Cost defined at the Item Level for the new package.

How Flourish calculates Unit Cost from source packages

1. Multiply each source package’s unit cost by the quantity used.
2. Add all source package costs together.
3. Divide the total cost by the total number of units created (Packages Created × Quantity per Package).

Examples

Example 1: All source packages have cost

You’re creating Item C from Item A and Item B.

Item C has a Standard Unit Cost = $5.00

• Item A: unit cost = $10, quantity used = 10 → cost = $100
• Item B: unit cost = $5, quantity used = 10 → cost = $50
• Total cost of source packages = $150

You create 5 packages of 10 units each = 50 units total

Flourish calculates the Unit Cost = $150 / 50 = $3.00

→ This new unit cost is used instead of the Standard $5.00.

Example 2: All source packages have zero cost

You’re creating Item C from Item A and Item B.

Item C has a Standard Unit Cost = $5.00

• Item A: unit cost = $0, quantity used = 10 → cost = $0
• Item B: unit cost = $0, quantity used = 10 → cost = $0
• Total cost of source packages = $0

Since all source costs = $0, Flourish defaults to Standard Unit Cost

→ New Unit Cost = $5.00

Example 3: Mixed source costs

You’re creating Item C from Item A and Item B.

Item C has a Standard Unit Cost = $5.00

• Item A: unit cost = $0, quantity used = 10 → cost = $0
• Item B: unit cost = $5, quantity used = 10 → cost = $50
• Total cost of source packages = $50

You create 5 packages of 10 units each = 50 units total

Flourish calculates the Unit Cost = $50 / 50 = $1.00

→ Since at least one source package has cost, Flourish uses actuals instead of the Standard Unit Cost.