diff --git a/CHANGELOG.md b/CHANGELOG.md
index 582b088762..80fb150ebb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,6 @@
 # Pending additions
 - [#717] (https://github.com/helmholtz-analytics/heat/pull/717) Switch CPU CI over to Jenkins and pre-commit to GitHub action.
+- [#720] (https://github.com/helmholtz-analytics/heat/pull/720) Ignore test files in codecov report and allow drops in code coverage.
 
 ## New features
 - [#680](https://github.com/helmholtz-analytics/heat/pull/680) New property: larray
diff --git a/Jenkinsfile b/Jenkinsfile
index 8264c5acc2..90961337f9 100644
--- a/Jenkinsfile
+++ b/Jenkinsfile
@@ -34,7 +34,7 @@ pipeline {
                 sh 'coverage erase report/cov/*'
             }
             withCredentials([string(credentialsId: 'codecov-token', variable: 'CCTOKEN')]) {
-                sh 'curl -s https://codecov.io/bash | bash -s -- -c -F unittests -f coverage.xml -t $CCTOKEN  || echo "Codecov failed to upload"'
+                sh 'curl -s https://codecov.io/bash | bash -s -- -c -F unit -f coverage.xml -t $CCTOKEN  || echo "Codecov failed to upload"'
             }
         }
     }
diff --git a/codecov.yml b/codecov.yml
index f03ba87ae9..b45f4eb443 100644
--- a/codecov.yml
+++ b/codecov.yml
@@ -2,3 +2,23 @@ ignore:
   - "heat/core/regression/lasso/demo.py"
   - "heat/core/regression/lasso/plotfkt.py"
   - "heat/examples/*"
+  - "heat/**/test_*.py"
+
+coverage:
+  status:
+    project:
+      default:
+        # basic
+        target: auto
+        threshold: 5%
+        base: auto
+        flags:
+          - unit
+        paths:
+          - "heat"
+       # advanced settings
+        branches:
+          - master
+        if_ci_failed: error #success, failure, error, ignore
+        informational: false
+        only_pulls: false