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How does EGO_ITEM_PUB.Process_Item defaults costing_enabled_flag and inventory_asset_flag fields?

How does EGO_ITEM_PUB.Process_Item defaults costing_enabled_flag and inventory_asset_flag fields?

I have a call to EGO_ITEM_PUB.Process_Item process and not passing any value to columns costing_enabled_flag and inventory_asset_flag; however, both fields are defaulted to N in MTL_SYSTEM_ITEMS table. In the front end, these two fields are check boxes, so I would assume that N value means unchecked and Y means checked. However, I can't find where the value of N is being defaulted when you do not pass any value to the field in the API?

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