3.1.4.4.2 Budget as a Billing Category

New Budget Billing Category

Are you looking for a possibility to invoice your customer every month with a flexible Sales Price? Then our Billing Category “Budget” is the solution which was fully released with version 2.169.

Ad Spec Setup

Create an Ad Spec with the Billing Category Budget and specify the List Price. This List Price/Sales Price can be adjusted to the budget amount during the Campaign Item creation in Campaign Builder.

Item Configuration Settings

ADvendio provides a few example Tab Rules for the Campaign Item Builder. The example Tab Rule “Make Sales Price read only“ makes the Sales Price always read-only.
To adjust it for Budget, go to Item Configuration Settings → Edit → Tab Rules

Edit the example Tab Rule with the name “Make Sales Price read only“.

Open

Add a new Condition where the Campaign Item Billing Category Not Equals Budget → Confirm Changes and Save

Open

Now your sales team has an Ad Spec with a flexible Budget Sales Price, which can be selected during Media Campaign creation.

Campaign Item Creation

There are 3 possible ways to charge your customers when the Budget billing category is used:

To be able to invoice your customer every month with a flexible Sales Price, you need to disable linear distribution and to make sure that the new Revenue Schedule field Actual Media Spend is populated accordingly.

We strongly recommend adding a new field named “unlimited invoice amount" (ADvendio__UnlimitedInvoiceAmount__c) to the PreventFieldChanges feature setting. This will prevent the field from being changed without using an optimizer for partially or fully invoiced campaign items.

Absolute surcharges and discounts

For Unlimited Invoice Amount, absolute surcharges and discounts will be capped.

When Campaign item is overdelivering:

The Campaign Item is set up with 1000.00 as sales price and 50.00 as absolute surcharge. The total actual media spend exceeded the budget sales price by 10.00. The total invoiced absolute surcharge will be capped to 50.00.

When Campaign item is underdelivering:

The Campaign Item is set up with 1000.00 as sales price and 50.00 as absolute surcharge. The total actual media spend is 800.00. The total invoiced absolute surcharge will be 40.

Surcharge sales price absolute is always fully applied to all invoice items. No surcharge sales price absolute will applied, If the Sales Price (Actual Media Spend) equals 0.

Accounting record creation

Accounting records will be calculated taking into account your invoices, delivery and the setting of your ad spec:

• Linear Accounting Calculation - Your accounting records will be created linearly, ignoring revenue schedules and delivery data for all processes. This field overrules other Accounting record related settings on the ad spec.

• Enable Distribution for Accounting - enabling distribution accounting record creation. Accrual creation is also impacted by this field (it will take site based delivery data or enhanced delivery data into account). When disabled no distribution records will be created.

• Accounting Distribution Quantity Type - this is a mandatory field when you want to create accounting records based on delivery data for Fixed price categories (Fixed Price, CPD, CPO, CPO, CPW, CPY, CPW, CPL, CPx) items. This is irrelevant for CPM, CPC, vCPM, CPCV and Budget.

• Connection under the Ad type - is the identifier for accounting record processes to know when to expect the delivery data (irrelevant for Budget)

When Campaign item should be excluded from any accounting process, it can be done using the following fields on the Campaign item:

• Exclude from Distribution Process

• Exclude from Accrual Process

• Exclude from Collection Process

• Exclude from Deferral Process

On the Administration settings you can disable accrual creation for over-deliveries. Which means that if your campaign item deliver more then planned, we will create no accrual accounting records for this item. The Distribution adjustment will still be done at the complete state of a Campaign Item. Sites which will deliver the first time after the campaign item already over-delivered will not be creating any accrual amount, they will be creating distribution amount at the end of the campaign item during the distribution adjustment phase.

Distribution for Budget billing category

In general, distribution records are created for delivered invoiced amount. This happens at the end of a month or after the runtime is over for all not yet distributed delivered invoiced amount. The distribution adjustment functionality will ensure for completed campaign items that the distributed amount is always matching the invoiced amount (even for under-delivery) and that the ration for site based or enhanced delivery data is taking the total runtime into account which is especially important for over-delivery. The distribution adjustment functionality will run for campaign item which are fully invoiced and where the runtime is over. Each distribution record has a relation to their respective invoice item.

For Budget Campaign Items, the delivered amount for each month is calculated with Actual Media Spend as sales price. Unless the Ad Spec Accounting Linear Calculation is enabled, in which case the delivered amount calculation is based on linear distribution calculations.

• Distribution Quantity Type has no impact

• Enable Distribution for Accounting needs to be enabled

• The existence of an Ad Type Connection has no impact

The distribution adjustment will make sure at the end of the runtime for completely invoiced campaign item, that the Distribution records are matching the invoiced amount regardless of the delivered amount.

Deferral Creation / Deferral Reverse for Budget billing category

In general, deferral records are created for invoiced amount which is not delivered yet. This happens at the end of a month for all not yet delivered invoiced amount. New deferral records are only created if existing open deferral amount got reversed beforehand. Each deferral record has a relation to their respective invoice item. Deferral records will no longer be created when the campaign item has an invoice for all related payment intervals and the runtime is over.

• Distribution Quantity Type has no impact

• Enable Distribution for Accounting has no impact

• The existence of an Ad Type Connection has no impact

Accrual Creation / Accrual Reverse for Budget billing category

In general, accrual records are created for delivered amount which is not invoiced yet. This happen at the end of a month or after the runtime is over and the campaign item is not fully invoiced yet. New accrual records are only created if existing open accrual amount got reversed beforehand. Accrual records will no longer be created when the campaign item has an invoice for all related payment intervals and the runtime is over.

Accrual records will only be created when the Bill Me field is checked in on the Campaign item.

• The Admin Setting “Disable Accruals for over-delivery“ has no impact

• Distribution Quantity Type has no impact

• Enable Distribution for Accounting has no impact

• The existence of an Ad Type Connection has no impact