What is Valuation Rate calculated for an Item with default BoM?

Hi I saw valuation rate in item page but I also set up a BoM for the same item. How will these 2 valuations be used in ERPNext? Thanks.

The valuation rate in the Item is the default valuation rate and it is used if you set opening inventory at the time of item creation. It is also used if you allowed negative inventory and while delivering an item which has no inventory, it takes from Item.

The rate mentioned in the BOM is used in the Production order and affects actual valuation rate of item when it produced.

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