Quite often you would have a certain profitability goal that you need to meet with every project. Your overall company profitability will depend on how profitable each and every project you do is.

In Price&Cost you have a number of options to stay focused on meeting your desired profitability.

Default profitability threshold settings

In Settings you can define a default profitability threshold that would then be applied to all new projects.

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There are 2 ways to define your profitability goals:

  • Baseline variance - this will be relevant to your project's baseline version. You can defined a % variance that is still considered OK. Anything below that would trigger the the Profitability to show as underperforming.
  • Absolute profitability - this will be a certain profitability % that you want you projects to meet, regardless of what your baseline version's profitability is. If your profitability drops below this number - it's considered as underperforming.

Project-level profitability threshold settings

The default setting will be applied to every new project you create in Price&Cost, however you can easily adjust your settings on per-project basis.

When creating a new project the default setting will be pre-selected but you can easily adjust these to match the goals for a specific project in the Financial Settings tab.

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Monitoring project profitability

Once you've set profitability settings for your project and the project has kicked off, you will start seeing Price&Cost highlighting when you go over the threshold:

In your dashboard:

https://cdn.elev.io/file/uploads/Xz4cmdIQ431-kE2TUD3d2Ib9E0Gr5NoMfPzwQnr374E/iLRP4fNMAu_QDJXPuVcTitLxXQrAB_zxaSIsUxBsw78/profitability_7-_Xs.png


And also in your project detailed view:

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See how changing profitability threshold at different project stages may be useful to track project performance