Setting profitability threshold for projects
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.
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.
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:
And also in your project detailed view:
See how changing profitability threshold at different project stages may be useful to track project performance