Mark Up, Commission, Rebate and Markup + Commission

There are two types of media suppliers:

Suppliers who give you a commission - usually the traditional suppliers eg TV, radio, print
Digital suppliers such as Facebook and Google who do not give you a commission

Processing of Traditional Media plans

1 start and end date

2 number of units

3 supplier rate

4 select a commission option: either % or amount or Mkup=Comm

5 tick FOC, if it is free of charge to the client

6 either MUP% or Markup amount if the markup is not equal to the commission

7 JobBag calculates the “Bill to Client” amount. Note this field is editable

8 Tick “do not bill” if you do not wish to invoice the client.

Processing of Non Traditional Media plans

Digital media companies do not pay a commission. This is a standard markup scenario. A client agrees to pay you $5000 and your cut is $500.00. You, therefore, have a budget of $4500 to spend with Facebook.

Choose which applies to your booking in the columned called Media mode. This term describes the basis used to calculate the amount you wish to invoice the client. This amount is dependent on:

The amount of commission you keep
The markup on the net supplier amount or gross supplier amount
This then is used to calculate the client ‘invoice’ amount.

The drop-down list consists of the following modes:

Commission

The amount invoiced to the client equals supplier net amount plus commission; when this option is selected, it is not possible to change the % or the amount. An example is as below:

Supplier Invoice: $10000

Commission 10%: $1000

Net Payable to the supplier: $9000

When “commission” mode is selected, the client invoice is for $10000

Markup

This option allows you to change the % markup or the dollars markup; when markup % is selected a markup amount is created. You can then change either the % or the $ for the markup. The markup % is calculated using the net amount payable to the supplier.

Supplier Invoice: $10000

Commission 10%: $1000

Net Payable to the supplier: $9000

Client mark up %: 20%

JobBag calculates mark up of $1800 (10% of net amount)

Client Invoice totals: $1800 (markup) plus $9000 (net paid to supplier)

Markup+Commission

This option allows for: the commission to be calculated on the Supplier side. The markup percentage is applied to the gross s supplier media amount. Any changes to the Charge to Client amount only update the % markup on the client-side of the booking, they do not change anything on the supplier side of the booking.

Supplier Invoice: $10000

Commission 10%: $1000

Net Payable to the supplier: $9000

Mode: Mkup+Comm: 20%

JobBag calculates mark up of $1800 (20% of gross paid to the supplier $10000)

Client Invoice totals: $1800.00 (markup) plus commission $1000 plus $9000.00 (net paid to supplier)

Rebate

This option allows for: the commission to be calculated on the Supplier side. The markup is applied to the gross supplier media amount before the commission. Any changes to the Charge to Client amount only update the % markup on the client-side of the booking, they do not change anything on the supplier side of the booking.

Supplier Invoice: $10000

Commission 10%: $1000

Net Payable to the supplier: $9000

Mode: Rebate: 5%

JobBag calculates a rebate of $500.00 (5% of the gross supplier invoice $10000)

Client Invoice totals: $10000.00 less rebate of $500