Table of Contents
Overview
OneStrata has a large number of fields and terms related to costs and cost calculations, in order to effectively handle complex pricing scenarios that may involve multiple types of currencies.
- Cost methods: The cost method defines what types of cost-related fields interact in which types of ways, in order to determine what is billed to the client, what is paid to the vendor, and what is income to the agency
- Agency, Client, and Vendor Currencies: What type of currency or currencies the agency, client, and vendor transact in.
- Cost Types: Cost- and rate-related fields
Cost Methods
Cost methods define what type of cost-related fields are available, and how they are calculated. Depending on the selected cost method option, some cost-related fields are related and can be calculated from each other, and some fields are not.
Each top-level line on a Schedule Grid (a Cost Package, a standalone Media Package that is not part of a Cost Package, or a standalone Placement) can apply a different cost method.
There are three cost method options:
- Standard: Available for all OneStrata enterprises by default
Margin: Gated and managed by FreeWheel, available on request
- Allocated: Available for all OneStrata enterprises by default
| Cost Method | Description |
|---|---|
Standard Cost Method | Vendor costs and client costs are connected: Vendor Gross Cost = Client Gross Cost If one set of vendor or client costs (a combination of Unit and Rate, Unit and Total Cost, or Rate and Total Cost) are defined, all other Cost Types, like Client Commission or Vendor Discount, can be calculated from that set. |
Margin Cost Method | Vendor costs and client costs are not directly connected, and are calculated separately: Vendor Net Cost =/= Client Net Cost If one set of vendor costs are defined, the other vendor cost types can be calculated from that set but the client cost types cannot, and vice versa. Vendor and client costs are connected by a third value, the Margin Percentage value:
|
Allocated Cost Method | The client has allocated, or set aside, a fixed amount of budget to cover both the cost of the media and any related agency fees. Costs are calculated in the following order:
|
Currencies
OneStrata provides support for up to three different currencies within a single transaction:
- Agency Currency, or AC for short
- Client Currency, or CC for short
- Vendor Currency, or VC for short
Costs and rates are shown in one or more of these currencies, with AC, CC, or VC appended to indicate which currency type the value is in.
| Currency Type | Description | Origin |
|---|---|---|
Agency Currency AC Base Currency Local Currency | The currency in which the Agency transacts. All cost lines in a campaign must be in the same Agency Currency. | Agency Currency is defined on the Agency record, on the Administration > Entity Management > Agencies > (Specific Agency) > Details tab. Each Agency has only one Agency Currency. |
Client Currency CC Billing Currency | The currency in which the Agency bills the Client. All cost lines in a campaign must be in the same Client Currency. | Client Currency is defined on the Client record, on the Administration > Entity Management > Clients > (Specific Client) > Details tab. Each Client has only one Client Currency. |
Vendor Currency VC Payable Currency | The currency in which the Agency pays the Vendor. Each cost line in a campaign can be in a different Vendor Currency. | Vendor Currency is defined on the Contract record, on the Administration > Entity Management > Contracts > (Specific Contract) tab. A Contract may have one or more Vendor Currencies. |
Cost Types
In OneStrata, cost types—fields related to calculating costs—are broadly grouped into three types:
- Client costs: Costs between the agency and the client
- Vendor costs: Costs between the agency and the vendor
- Other costs: Non-client-related and non-vendor-related costs
When a cost type is displayed or used, it specifies which type of currency the cost type is in:
- Example: Vendor Net Cost (VC) refers to the vendor net cost, displayed in the Vendor Currency
- Example: Vendor Net Cost (CC) refers to the vendor net cost, displayed in the Client Currency
Oops, it seems that you need to place a table or a macro generating a table within the Table Filter macro.
The table is being loaded. Please wait for a bit ...
| Cost Type Group | Cost Type | Description | Origin | Calculation (Standard Cost Model With 1 Tax) |
|---|---|---|---|---|
| Client | Client Commission Cost Client Commission | The amount of commission that the client is charged. | Calculated | Client Commission = Client Commission Percentage x Client Commission Basis |
| Client | Client Commission Percentage Client Commission Rule Client Commission % Commission Percent | The percentage of commission that the client is charged. | Defined on the Administration > Entity Management > Clients > (Specific Client) > Commissions tab | N/A |
| Client | Client Commission Basis Commission Basis Basis | The cost type that the Client Commission Percentage is applied to: Client Gross Cost or Client Net Cost.
| Defined on the Administration > Entity Management > Clients > (Specific Client) > Commissions tab | N/A |
| Client | Client Discount Client Passback | The amount of the Vendor Discount that is passed on to the client.
| Calculated | Client Discount = Vendor Discount x Client Passback Percentage |
| Client | Client Discount Percentage Client Discount Rule Client Discount % | The percentage of the Vendor Net Cost or Vendor Gross Cost that is passed on to the client as a discount.
| Calculated | Client Discount Percentage = Vendor Discount Percentage x Client Passback Percentage |
| Client | Client Gross Cost Client Gross | The amount that the client is quoted, before any discounts are applied. |
| Client Gross = Vendor Gross |
| Client | Client Gross Rate | The cost per unit that the client is quoted, before any discounts are applied. | Calculated | If Rate Type is not CPM-based: If Rate Type is CPM-based: |
| Client | Client Net Cost Client Net | The amount that the client is charged for the media purchases, after any discounts are applied but before any commission or taxes are added. |
| Client Net = Client Gross - Client Discount |
| Client | Client Net Rate | The cost per unit that the client is charged. |
| N/A |
| Client | Client Passback Percentage Client Passback Rule Client Passback % | The percentage of the Vendor Discount that is passed on to the client as a discount.
| Defined in Administration > Entity Management > Client > (Specific Client) > Passbacks | N/A |
| Client | Client Tax | The tax on activity that the client is charged, not including any commission. | Calculated | Depending on Client Tax Rule settings:
|
| Client | Client Tax on Commission | The tax on commission that the client is charged. | Calculated | Client Tax on Commission = Client Tax Rule x Client Commission |
| Client | Client Total Cost Client Total | The amount that the client is charged, after any discounts are applied and commission is added, but before any taxes are added. |
| Client Total = Client Net + Client Commission |
| Client | Client Total Cost with Tax Client Total with Tax | The amount that the client is charged, after any discounts are applied and after any commission or taxes are added. | Calculated | Client Total Cost with Tax = Client Total + Client Tax on Cost + Client Tax on Commission |
| Client | Client Total Rate | The cost per unit that the client is charged, after any discounts are applied and commission is added, but before any taxes are added. | Calculated | If Rate Type is not CPM-based: If Rate Type is CPM-based: |
| Vendor | Vendor Discount Percentage Vendor Discount Rule Vendor Discount % | The percentage of Vendor Net Cost or Vendor Gross Cost that the Vendor gives as a discount.
| Defined in Administration > Entity Management > Contracts > (Specific Contract) | N/A |
| Vendor | Vendor Discount Vendor Discount Cost | The amount of the discount that the vendor gives. | Calculated | Depending on the Vendor contract:
|
| Vendor | Vendor Gross Cost Vendor Gross | The amount that the vendor quotes, before any standard discounts are applied and any taxes are added. |
| Vendor Gross = Vendor Net + Vendor Discount |
| Vendor | Vendor Gross Rate | The cost per unit that the vendor charges, before any standard discounts are applied and any taxes are added. |
| N/A |
| Vendor | Vendor Net Cost Vendor Net | The amount that the vendor charges for the media purchase(s), after any discounts are applied but before any taxes are added. |
| Vendor Net = Vendor Gross - Vendor Discount |
| Vendor | Vendor Net Rate | The cost per unit that the vendor charges, after any discounts are applied but before any taxes are added. |
| N/A |
| Vendor | Vendor Tax Cost Vendor Tax | The tax on activity that the vendor charges. | Calculated | Depending on Vendor Tax Rule settings:
|
| Vendor | Vendor Total Cost Vendor Total | The amount that the vendor charges, after any discounts are applied but before any taxes are added. | ||
| Other | Allocated Amount | Allocated Amount is part of the Allocated cost method. The client budget allocated to a media line within the schedule. | Entered in schedule | N/A |
| Other | Allocated Fee Cost Allocated Fee | Allocated Fee Cost is part of the Allocated cost method. Client Net Cost of any fees applied to the line, where the fee is a percentage of the Allocated Amount. | Calculated | N/A |
| Other | Margin Percentage Margin Rule Margin % | Margin Percentage is part of the Margin cost method. The difference between the cost of a media purchase (Vendor Net Cost) and the price at which it is sold (Client Net Cost), as a percentage of the price at which it is sold (Client Net Cost). Margin Percentage = (Client Net Cost - Vendor Net Cost) / Client Net Cost |
| N/A |
| Other | Other Income Cost Other Income | The general term for any type of additional income that an agency makes, aside from commission. Sources of Other Income include:
| Calculated | Depends on the source of the additional income. |