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
- Currencies
- Cost Types
Cost Methods
Cost Methods are like pricing models; they define which Schedule Grid fields accept user-inputted values and which formulas are applied to those fields in order to calculate what is paid to the Vendor or billed to the Client. Each top-level line on a Schedule Grid (a Cost Package, a Media Package that is not part of a Cost Package, or a Placement that is not part of a Media or Cost Package) can apply a different Cost Method.
OneStrata has three Cost Method options:
- Standard Cost Method
- Margin Cost Method
- Allocated Cost Method
Depending on Enterprise or Agency settings, the Margin Cost Method and Allocated Cost Method options might not be available.
Cost Method | Description |
---|---|
Standard Cost Method | Vendor costs and Client costs are connected: Vendor Gross Cost = Client Gross Cost
|
Margin Cost Method | Vendor costs and Client costs are calculated separately: Vendor Net Cost =/= Client Net Cost
|
Allocated Cost Method | Used for when the agency is charging the client a fee, which is a % of the cost of the media plus that allocated fee. So user enters the Allocated amount for the line, applies and allocated fee, then the client net cost of that line = the allocated amount less any of the allocated fees. Then all other costs and rates are calculated form the client net cost using the standard set of formulas
|
Currencies
OneStrata provides support for up to three different currencies within a single transaction:
- Vendor Currency, or VC for short
- Agency Currency, or AC for short
- Client Currency, or CC for short
Costs and rates are shown in one or more of these currencies, with VC, AC, or CC appended to indicate which currency type the value is in.
Currency Type | Description | Origin |
---|---|---|
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 in the Vendor Contract: Administration > Entity Management > Contracts > (Specific Contract) A contract may have one or more Vendor Currencies. |
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 in the Agency record: Administration > Entity Management > Agencies > (Specific Agency) > Details. 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 in the Client record: Administration > Entity Management > Clients > (Specific Client) > Details. Each Client has only one Client Currency. |
Cost Types
In OneStrata, Cost Types—fields related to calculating costs—are broadly grouped into three types:
- Client costs
- Vendor costs
- Other costs
When a Cost Type is displayed or used, it specifies which Currency Type the Cost Type is in. For example, Vendor Net Cost (VC) or Vendor Net Cost (CC).
Cost Type Group | Cost Type | Description | Origin | Calculation (Cost Model Standard With 1 Tax) |
---|---|---|---|---|
Client | Client Commission | The amount of commission that the Agency charges the Client. | 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 Agency charges the Client. | Defined in Administration > Entity Management > Client > (Specific Client) > Commission | N/A |
Client | Client Commission Basis Commission Basis Basis | The Cost Type that the Client Commission Percentage is applied to:
| Defined in Administration > Entity Management > Client > (Specific Client) > Commission | N/A |
Client | Client Discount Client Passback | The amount of the Vendor Discount that the Agency passes 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 Vendor Net Cost or Vendor Gross Cost that the Agency passes on 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 Agency quotes the Client, before any discounts are applied. |
| Client Gross = Vendor Gross |
Client | Client Net Cost Client Net | The amount that the Agency charges the Client for the media purchase(s), after any discounts are applied but before any commission or taxes are added. |
| Client Net = Client Gross - Client Discount |
Client | Client Passback Percentage Client Passback Rule Client Passback % | The percentage of the Vendor Discount that the Agency passes on to the Client. | Defined in Administration > Entity Management > Client > (Specific Client) > Passbacks | N/A |
Client | Client Rate | The cost per unit that the Agency charges the Client. |
| N/A |
Client | Client Tax | The tax on activity that the Agency charges the Client, not including any commission. | Calculated | Depending on Client Tax Rule settings:
|
Client | Client Tax on Commission | The tax on commission that the Agency charges the Client. | Calculated | Client Tax on Commission = Client Tax Rule x Client Commission |
Client | Client Total Cost Client Total | The amount that the Agency charges the Client, 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 Agency charges the Client, 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 |
Vendor | Vendor Discount Percentage Vendor Discount Rule Vendor Discount % | The percentage of Vendor Net Cost or Vendor Gross Cost that the Vendor gives to the Agency 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 to the Agency. | Calculated | Depending on the Vendor contract:
|
Vendor | Vendor Gross Cost Vendor Gross | The amount that the Vendor quotes the Agency, before any standard discounts are applied and any taxes are added. |
| Vendor Gross = Vendor Net + Vendor Discount |
Vendor | Vendor Net Cost Vendor Net | The amount that the Vendor charges the Agency for the media purchase(s), after any discounts are applied but before any taxes are added. |
| Vendor Net = Vendor Gross - Vendor Discount |
Vendor | Vendor Rate | The cost per unit that the Vendor charges the Agency. |
| N/A |
Vendor | Vendor Tax Cost Vendor Tax | The tax on activity that the Vendor charges the Agency. | Calculated | Depending on Vendor Tax Rule settings:
|
Vendor | Vendor Total Cost Vendor Total | The amount that the Vendor charges the Agency, after any discounts are applied but before any taxes are added. | ||
Other | Margin Percentage Margin Rule Margin % | The difference between Vendor Net Cost (the amount that the Agency pays the Vendor) and Client Net Cost (the amount that the Agency charges the Client) that the Agency keeps as income. |
| Margin Percentage = (Client Net Cost - Vendor Net Cost) / Client Net Cost |
Other | Allocated Amount | The client budget allocated to the media line within the schedule | Entered in schedule | N/A |
Other | Allocated Fee Cost | Client Net Cost of any fees applied to the line, where the fee is a percentage of the Allocated Amount | Calculated |