How do standard cost updates impact open work orders?

A standard cost adjustment affects the on-hand inventory and the quantities in Work in Process. For the on-hand inventory, costing creates a standard cost adjustment. For the quantities that are already issued to a work order and if the work order is open, costing creates a WIP Standard Cost Adjustment.

If the cost of the finished product changes, it’s considered during the product completion or work order close. If the resource cost is changed, then Work in Process Resource Cost Adjustment transactions are created for open work orders.