The True-Up process is a critical weekly procedure (can be run monthly or as needed as well) designed to reconcile the preliminary field data (hours and quantities recorded in Riskcast) with the final, validated payroll and accounting data to ensure all project cost and productivity reports reflect the actual, true cost and hours/quantities to date. After reviewing this information, see how to handle this process within Riskcast in this article: Job Cost True Up in Riskcast. 

 

Background and Context

 

Field teams utilize Riskcast weekly to create timecards, charging employee hours and recording work quantities against specific cost codes. This provides a vital, immediate view for field management into:

 

• Crew activity and time allocation

• Productivity (quantity vs. hours)

• Preliminary cost tracking (assuming rates are in Riskcast)

 

However, the cost rates used in Riskcast are often preliminary estimates. The final, accurate costs are determined only after the official payroll run, which accounts for complex factors like specific union rules, overtime calculations, benefits, taxes, and other payroll adjustments.

 

Key Reasons for True-Up Adjustments

 

Adjustments are necessary because the field system's preliminary data needs to be superseded by the final, authoritative financial records. Common reasons include:

 

• True Cost Discrepancy (Rate Difference):

  • The most frequent reason. The hourly rates used in Riskcast are typically standard or average rates. The final "Real Cost" includes all payroll burden, such as taxes, insurance, and specific union wage/benefit rules, which Riskcast's preliminary rates may not fully account for, leading to a variance in the dollar cost.

• Post-Payroll Hours Changes:

  • Small adjustments to recorded hours or cost code allocations that were made after the timecards were initially submitted to Riskcast but before or during the final payroll run.

    • Example: an employee missed hours on a timecard and payroll manually added it into the account system and not into Riskcast

• Journal Entries (JEs)/Budget Reclassifications:

  • Accounting-side entries that allocate costs (e.g., equipment rental, material charges, or re-allocations of labor) to cost codes after the initial field reporting, which must be reflected in the project's total cost.

    • Example: Labor hours were coded incorrectly to a certain Labor type cost code. Those hours were moved from X cost code to Y cost code directly in the accounting system, not in Riskcast. 

 

Benefits of the True-Up Process

 

• Accurate Cost Control: Ensures project reporting is based on actual, verified payroll costs, not preliminary estimates.

• Reliable Reporting: Provides management and stakeholders with reliable Cost to Date and Hours to Date data for project analysis and forecasting.

• Data Integrity: Aligns the field management system (Riskcast) with the official financial records, maintaining data integrity across the organization.

 

True-Up Process Flow (Weekly Reconciliation)

 

This process ensures the official "Hours to Date" and "Cost to Date" values from the accounting system are accurately reflected in Riskcast.

1. Payroll & Final Cost Determination:

   • The week's payroll is processed by the Accounting/Payroll department.

   • This process finalizes the "Real Cost" (Actual Payroll Cost) and any final "Hours" for the week, incorporating any last-minute timecard adjustments or corrections.

2. True-Up File Generation:

   • The Accounting/Payroll team runs a report or generates a True-Up file.

   • This file contains the authoritative, finalized "Cost to Date" and "Hours to Date" for every affected cost code.

3. Data Reconciliation and Comparison:

   • The final values from the True-Up file are compared against the current aggregated values in Riskcast for the corresponding cost codes.

   • The system checks for any discrepancy between the two sets of data:

     • Riskcast Cost to Date vs. True-Up File Cost to Date

     • Riskcast Hours to Date vs. True-Up File Hours to Date

4. Adjustment Entry:

   • If a discrepancy exists, an Adjustment Entry is automatically (or manually) created and posted into Riskcast.

   • This entry records the difference needed to bring the Riskcast values into alignment with the official accounting data.

   • The adjustment is classified as a "True-Up Adjustment" within the Riskcast actuals ledger, showing the exact adjustment value.

 

 

 

Pre-Job True-Up (Historical Data Import)

 

The True-Up process isn't limited to post-payroll reconciliation; it is also the mechanism used to establish a starting point for projects that begin tracking hours/quantities/cost in Riskcast after work has already commenced. This initial True-Up allows us to accurately import historical data, ensuring all reports reflect the project's total life-to-date performance from day one of the project, not just from the day Riskcast was implemented.

 

How it Works:

 

Instead of running the True-Up file for a single payroll week, the file is compiled to include the cumulative hours and costs incurred prior to the Riskcast Go-Live date.

• Objective: To post historical "Cost to Date" and "Hours to Date" as of the cut-over date.

• Process: A one-time True-Up file is generated from the previous accounting system containing all historical data for each cost code.

• Result: A single, large "True-Up Adjustment" entry is recorded in Riskcast, representing the entire project history. This sets the accurate starting balance for all subsequent weekly reporting.

This approach ensures the project team has a complete and accurate financial history immediately available in Riskcast for forecasting, budgeting, and job cost reporting.