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Work in Process Standard Cost Update Transactions

The standard cost update process revalues standard and non-standard asset discrete jobs and updates pending costs to frozen standard costs. Repetitive schedules and non-standard expense jobs do not get revalued by the cost update.

The cost update creates accounting transactions by job and cost element valuation account. Each standard and non-standard asset discrete job is updated using the following formula:


If the result of the cost update is an increase in the standard cost of the job, the accounting entries for a cost update transaction are:

Account Debit Credit
WIP accounting class valuation accounts XX  
      WIP Standard cost adjustment account   XX

If the result of the cost update is a decrease in the standard cost of the job, the accounting entries for a cost update transaction are:

Account Debit Credit
WIP Standard cost adjustment account XX  
      WIP accounting class valuation accounts   XX

When the cost update occurs for open jobs, standards and WIP balances are revalued according to the new standard, thus retaining relief variances incurred up to the date of the update.

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