The cost update copies all costs from the Pending cost type to the Frozen cost type. Cost adjustments and revaluations are performed automatically. Updates the existing standard costs with the costs created in the pending cost type and
  creates the resulting adjustment accounting entries.

  If you use Work in Process, the cost update revalues discrete job  balances, creates accounting adjustments, and prints the adjustments along with the new job values in its report.

To update standard costs:
Responsibility = Oracle Costing
 Nav=>Item Costs, Standard Costs, Update Costs
     
 1) Select the pending cost type.

 2) Select an Adjustment Account.
   This account is used to collect the changes in value to each item, and to automatically generate transactions that adjust
    your inventory accounts. Your inventory is adjusted by subinventory and elemental cost account. Your discrete work in
    process is adjusted by job and cost element account. The WIP accounting class defines the adjustment account for your
    discrete jobs.

 3) (Optional)Enter a Description.

 4) Select an Item Range option. The options are as follows:
    All items: This is the default.
    Based on rollup items: Items that have Based on Rollup turned on in the Frozen cost type.
    Category: All items in a selected category.
    Not based on rollup items: Items that have Based on Rollup turned off in the Frozen cost type.
    Range of items: Range of items you specify.
    Specific item: Specific item you specify.
    Zero cost items: Items with zero cost in the Frozen cost type.

 5) Select a Sort Option for the adjustment report. The options  are as follows:
    Item: By item
    Category, Item: By category, then by item within the category
    Subinventory, Item: By subinventory, then by item within the subinventory (Default)

 6) If you selected All Items for Item Range, select an update option: either Overhead, resource, activity, and item costs, or
    Resource,overhead, and item costs. Overhead, resource, activity, and item costs:
    Resource, overhead, and item costs: This is only available if you use Inventory with Bills of Material. If you use Work
          in Process, choose this option to reflect resource and overhead cost changes for actual charges to standard and
          non–standard asset jobs.
    Activity and item Costs:
    Item costs only: This is the default.

 7) If you selected Specific item for the Item Range, select the Specific Item to be updated.

 8) If you selected Category for the Item Range, do one of the following:
    Select a Category Set. The default is the category set defined for the costing functional area.
    Select a specific category.

 9) If you selected Range of items in the Item Range field, select beginning and ending Item From and To values. Standard costs are updated for all items in this range, inclusive.

10) Indicate whether to save details. Selecting Yes saves a snapshot of the inventory and work in process on– hand quantities cost update details. If you select Yes, you can rerun the adjustment reports as long as you choose to maintain the details. You can purge standard cost history to delete these details.