Six categories, one ID — how real-time project profitability became possible
Project managers couldn't see the profitability of their engagements while they were running, and cost data was manually transferred into a spreadsheet. We mapped the document flow, defined six cost categories, and introduced a single project identifier passing through all systems. The first obstacle, however, turned out to be an incorrect interpretation of regulations by the external accounting firm.
Intuition instead of profitability measurement
The company was growing dynamically and had reliable intuition about which projects were profitable. Intuition doesn't replace measurement, however. Cost data was manually transferred from invoices to a spreadsheet by two people. Warehouse documents waited three to four months to be issued because the servicing accounting firm maintained they couldn't precede the final invoice. Shipping costs couldn't be assigned to a project because the carrier's system lacks an appropriate field. As a result, project managers had no view of engagement profitability while it was running. Information arrived after work was completed — or never. In the lowest-margin segment, this meant running operations with no basis for ongoing decisions.
What we didOne identifier and an agreed cost definition
- Verified a barrier that turned out to be non-technological — after changing accounting firms, the new entity confirmed that warehouse documents can be issued before the final invoice, unblocking a flow stalled for months.
- Mapped the financial and warehouse document flow and defined six cost categories: subcontractor invoices, goods purchased for a specific project, goods drawn from the warehouse, electronic payment fees, shipping costs, and own work split into documentation and execution.
- Introduced a single project identifier passing through all systems — the same key in the task system, accounting documents, and warehouse documents. Without this element, no report is feasible.
- Assigned revenue to three categories and defined margin as a comparison of the actual result with the margin assumed at the sales stage, since only that comparison has decision-making value.
- Adopted temporary solutions for areas without integration rather than halting the entire project until they're resolved.
What changed
The document flow now operates on an ongoing basis, without the previous delay of several months. The cost and revenue model has been written down and agreed for the first time in the company's history. Manual data transfer from invoices to the spreadsheet has been eliminated. Deployment is ongoing: a cost and revenue view broken down by projects, available to project managers and administration in real time.
“The question of what an AI deployment contributed to the bottom line will be asked by a bank, investor, or board. Most organizations have no data-driven answer. The answer begins with seemingly secondary elements: a single identifier passing through all systems and an agreed definition of cost. Without them, you can calculate neither margin nor the effect of any deployment.”
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