Work Orders/Sales Order with action as cancel

I would like to confirm my understanding,

We have sales order / Work order as source of Demand for which Child Jobs are already created. Now due to some reason Sales Order/ Parent Work Order got cancelled and all this will be collected and ASCP will suggest action as cancel for such Work orders. for such Order in workbench, Pegging will show as - Pegging information has not been calculated for this item.

Does it means that ASCP will then also release the capacity of the resources which are allocated to the work order where it suggest action as cancel and that capacity will be used for another order. Same applies to row material required for that work order.