Case Study · EPC Contracting
How a Mid-Size EPC Contractor Closed the Cash Flow Gap with NetSuite
Revenue Band
₹40-80 Cr annual turnover
Active Projects
12 simultaneous contracts
Go-Live
18 weeks, full ERP + CRM
The Problem
No Single Source of Truth
Each of the twelve active contracts lived in its own Excel workbook. Cost entries were reconciled manually at month-end, making real-time P&L on any individual project impossible. Teams made spending decisions without knowing where a project actually stood.
Delayed Milestone Invoicing
Billing was triggered by a project manager’s email rather than a system event. Completed milestone invoices sat un-raised for three to six weeks, creating a direct and recurring drag on working capital that compounded across every active project.
Subcontractor Cost Bleed
Subcontractor invoices were approved without cross-checking against sanctioned BOQ items or retention clauses. Duplicate payments accumulated quietly, and unapplied GST input credits slipped through month after month without any structured reconciliation process.
The Solution Stack
NetSuite
Project Management
Live Budget vs. Actual with BOQ-Locked Subcontractor POs
- One project record per contract surfaces live cost vs. budget at any point during execution.
- WIP recognition rules tied to percentage-completion milestones, aligned to IndAS 115.
- Subcontractor POs locked to BOQ line items, blocking over-commitment before it reaches accounts.
- Retention amounts auto-withheld per contractual terms, with scheduled release and approval workflow.
- Budget variance alert fires at the 80% threshold, giving project managers time to act mid-project.
NetSuite
Accounts Receivable
Milestone-Triggered Invoicing with GST E-Invoice Inside NetSuite
- Milestone completion automatically generates a draft invoice routed to the PM for approval.
- GST e-invoice and IRN generation handled inside NetSuite ERP via API connector, no manual portal upload.
- Collections dashboard surfaces overdue amounts by project and client with 30/60/90-day aging bands.
- Full GSTR-2B reconciliation inside NetSuite captures every eligible input credit without manual cross-checks.
Tender Pipeline with Direct Handoff to NetSuite on Award
- Tender opportunities tracked from enquiry to letter of intent with probability-weighted revenue forecasting.
- Bid cost estimates attached to Zoho CRM deals and synced directly to NetSuite on status change to awarded.
- Eliminates manual re-entry of bid data when a project moves from pipeline to execution.
Before vs. After
| Process Area |
Before |
After |
| Project P&L Visibility |
Month-end only, manual consolidation across workbooks |
Live per-project dashboard, updated continuously |
| Invoice Raise Time |
3 to 6 weeks after milestone sign-off |
Within 24 hours of milestone completion |
| Subcontractor Bill Validation |
Manual BOQ cross-check, prone to gaps and duplicates |
System-blocked if PO line item is violated or exhausted |
| GST Input Credit Tracking |
Missed credits due to no structured GSTR-2B reconciliation |
Full GSTR-2B reconciliation inside NetSuite, credits captured |
| Cost Overrun Detection |
Discovered at project close, no mid-project alert |
Budget variance alert at 80% threshold, mid-project |
| Tender-to-Cash Handoff |
Bid data re-entered manually into project records on award |
CRM deal syncs automatically to NetSuite project on status change |
| Retention Release |
Tracked in a separate spreadsheet, often delayed or missed |
Scheduled release with structured approval workflow in NetSuite |
Implementation Phases
1
Discovery and Chart of Accounts Design Weeks 1-3
- Mapped all twelve active project structures, cost categories, and BOQ line item conventions.
- Designed a unified chart of accounts covering project P&L, retention, WIP, and GST payable and receivable.
- Documented milestone billing triggers and contractual retention terms for each client type.
2
NetSuite Core Build and Data Migration Weeks 4-10
- Configured project records, budget vs. actual tracking, and BOQ-locked subcontractor PO workflows.
- Built IndAS 115 WIP recognition rules and retention auto-withholding logic.
- Migrated open project data, vendor master, and historical cost entries from Excel into NetSuite via Aaxonix’s implementation service.
- Integrated GST e-invoice API connector and validated IRN generation end-to-end.
3
Zoho CRM Setup and NetSuite Integration Weeks 11-15
- Configured Zoho CRM tender pipeline with probability-weighted forecasting and bid cost attachment.
- Built the CRM-to-NetSuite sync trigger on deal status change to awarded.
- Tested end-to-end flow from tender enquiry through project record creation without manual re-entry.
4
Parallel Run, Training, and Go-Live Weeks 16-18
- Ran NetSuite alongside existing Excel processes for three weeks to validate output accuracy.
- Delivered role-based training for project managers, accounts, and procurement teams.
- Cutover with all twelve active projects live in NetSuite, zero manual billing backlog on day one.
Results
0%
Reduction in Project Cost Overruns
0x
Faster Client Invoice Turnaround
₹0L
Annual Cash Flow Gap Recovered
Project Operations — Key Metrics Before vs. After
What This Means for EPC Contractors
When project P&L is visible in real time and invoicing is tied to system events rather than email reminders, cash flow stops being a guesswork problem. The gap between work completed and cash received closes, and cost overruns become something you catch mid-project rather than explain at closeout. Talk to us if your EPC business is ready to make the shift.
Frequently Asked Questions
How does NetSuite handle retention accounting for EPC contracts?
NetSuite withholds retention amounts automatically at the point of subcontractor PO creation, based on the retention percentage defined in the contract record. The withheld amount sits in a dedicated retention liability account until release conditions are met. When the contractual release date arrives or a completion event is recorded, NetSuite generates a scheduled release transaction routed through an approval workflow before payment is made. This removes the need for a separate retention tracker and ensures no retention is released without explicit sign-off.
Can NetSuite produce GST-compliant e-invoices for milestone billing?
Yes. NetSuite connects to the GST e-invoice portal via an API connector that generates the Invoice Reference Number directly inside the system, without requiring a manual upload to the government portal. When a milestone is marked complete and the draft invoice is approved, the connector submits the invoice data, retrieves the IRN and QR code, and attaches them to the NetSuite invoice record. The resulting PDF is GST-compliant and ready to send to the client, cutting what was previously a multi-step manual process down to a single approval action.
What does the Zoho CRM to NetSuite integration actually automate?
When a tender opportunity in Zoho CRM moves to awarded status, the integration automatically creates a corresponding project record in NetSuite, pulling across the client details, contract value, bid cost breakdown, and project manager assignment. This eliminates the manual re-entry that previously happened between the CRM team and the accounts team after an LOI was received. The bid cost estimate attached to the CRM deal becomes the opening budget in the NetSuite project, giving finance a baseline from day one rather than waiting for project setup to be completed separately.
How does the system handle cost overrun detection mid-project?
NetSuite monitors committed and actual costs against the approved project budget continuously. When total committed spend, including POs and posted actuals, crosses 80% of the sanctioned budget, the system fires a variance alert to the project manager and the finance controller. This gives the team time to review scope, raise a change order, or adjust procurement before the project goes over budget. Under the previous Excel-based setup, overruns were typically discovered during month-end consolidation, often when a project was already at or past its limit.
