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Profitability compares earnings to cost and reports profit as the difference. On workspace and project Finance Overview, earnings are recognized revenue. Available to admins, managers, and finance users.

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Where to find it

Both surfaces show the same six cards and a cumulative chart. See Finance overview and Project finance for the cards themselves.

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The core formula

On those cards and charts:
Totals at the top of the profitability card are the sum of monthly data points in the selected range. Recognized is resolved per project (method, then any monthly override) and rolled up. Changing a project’s recognition method moves earnings and profit. See Revenue recognition.
Worked revenue (hours × assignment rate) is a dashboard metric and the input to average billing rate. It is not the earnings number on the Finance Overview cards.

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Planned comparison

The cumulative chart also plots planned profitability from resource allocations:
  • Allocations are clipped to calendar month boundaries.
  • Hours per day come from the allocation’s weekday schedule (Monday–Sunday minutes).
  • Only allocations whose date range overlaps the filter are included.
Planned answers: “If we deliver what is currently on the schedule, what profitability should we expect?” It is a comparison line, not a second mode for the six cards.

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Customer finance

On a customer finance page you can switch the profitability card between recognized earnings and invoiced earnings. That answers a different question (what we billed versus what it cost). Workspace and project Finance Overview cards always use recognized.

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How cost is built

Total cost per month is:
That is the same cost of delivery used on the Cost card.

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Labor cost (employment contract)

For each hour of work (logged or planned), Pike looks up the member’s employment contract and derives an hourly employment cost from: Monthly / yearly working hours use business days (weekends excluded) and the contract’s hours per week:
If a member has no contract, employment hourly cost is 0 for that member in profitability. Overhead may still apply if they are assigned overhead items. For how contracts feed hourly cost on member profiles, see Cost profile.

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Overhead

Hourly overhead from assigned overhead cost line items is added to the employment hourly cost:
See Overhead costs for allocation rules and the contract-based hours conversion.

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Expenses

Project expenses add to cost when either:
  • the expense has no project, or
  • the expense is not billable
Billable expenses linked to a project are excluded from profitability cost (they are treated as pass-through to the client, not internal cost). Expense cost uses amount × exchange rate and is grouped by date incurred month.

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Filters

Profitability respects filters passed to the calculation. What you select determines which recognition rows, time entries, allocations, and expenses are included.

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Supported filters

Filters combine with AND logic: a record must match every filter you set.

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Where filters appear in the product

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Date grouping and chart behaviour

  • Results are aggregated into monthly data points.
  • The cumulative chart stacks profit over time within the filtered range.
  • Planned profitability is always fetched alongside actuals for comparison on the chart.
When you set a date range explicitly, that range is used. When you do not, Pike infers the range from recognition months, time entries, expenses, and (for planned) allocation dates.

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Revenue vs cost timing

Recognized and cost can land in different months: An override or Time % restatement in March for January work will show earnings in March and labour cost in January.
When month-to-month profit looks off, check the project’s recognition method and any manual overrides on Revenue recognition before assuming cost is wrong.

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Access and permissions

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Prerequisites for accurate numbers

Profitability is only as good as the underlying data.

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Example walkthrough

Setup
  • Project recognizes by Worked. Developer logs 10 h in March on a billable task at £150 / h.
  • Contract: £6,000 / month, 37.5 h/week → ~£36 / h employment cost.
  • Overhead share: £2 / h.
  • Loaded cost: £38 / h.
  • No manual override.
March
If the same project used Time %, March earnings would be that month’s share of the revenue budget, not £1,500, while cost would stay £380.

Finance overview

Workspace cards, filters, and charts.

Revenue recognition

How recognized is calculated and overridden.

Overhead costs

Shared expenses and how hourly overhead loads onto labor cost.

Cost profile

Set member contracts, capacity, and hourly employment cost.