1

Standard Agency Job, Pre-Bills with MatchPay(ID.01/09)

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Current Process – Key Components Standard agency job with Match Pay

ID Media mostly pre-bills and will only pay the vendor after payment has been received from the client

Performs final reconciliation

Commissions are recognized when billed

3

Proposed Future Process – Key Components Create standard agency job

Create Estimate and Purchase Order

Process Vendor Invoice

Create Pre-Bill/Estimate Bill (performed by SSC)

Execute manual matchpay (ZFMPAY) to release vendor payments

Perform final reconciliation and close the job

Recognize Revenue as per revenue method

4

Proposed Future Process – Key Components

Vantage Term Agency Term DefinitionStandard Billable Job A billable job with only one or more participating segment

StandardSingle-segment

A billable job with a single segment, i.e. one line of business within one sales office Office Locations (Plants)

New YorkLine of Business (LoB)

Advertising

6

Job Creation and MaintenanceVantage Business Process

Performed in Vantage

Outside of Vantage

The role of Shared Services as depicted in these process flows will vary by agency (i.e. which boxes are in the which swim lane). It is between each agency and Shared Services to make this determination. Swim lanes presented here are not necessarily representative of every agencies’ future state.

7

What is Matchpay

• IPG custom solution which prevents billable vendor invoices from being paid before client pays the agency.

8

Matchpay Basic Functionality

• Matchpay program places an automatic “Matchpay block” on (P.O. and Non-P.O.) production vendor invoices.

• Vendor invoices are not available to be paid by normal Accounts Payable processing until the Matchpay block is removed.

9

Matchpay Basic Functionality

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Matchpay Settings

• Matchpay is an agency specific solution which is “set-up” at the company code level.

11

Two Existing “Matchpay” Profiles

• Manual Matchpay Process Advantage: more control

• Automated/Exception Based Matchpay Process Advantage: efficient processing of large

invoice volume

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Manual Matchpay Profile

• What’s Included All Vendor Invoices (P.O. and Non-P.O.) with at

least one billable job automatically receive a Matchpay block during invoice creation.

The block prevents the invoice from being paid.

13

Manual Matchpay Profile

• When Matchpay program is processed at the agency, the program will “propose” the invoices which are due to be released from “MP Block” (Based on calculation rule.) IMPORTANT Program will not remove block,

only propose it. “MP Block Release” has to be confirmed by user.

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Manual Matchpay Profile

• Invoice(s) “proposed” to have matchpay block removed, are selected based on invoice due date and calculation rule.

Due date = document date (vendor invoice date) + payment terms.

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Manual Matchpay Profile

• Calculation rule: vendor invoice matchpay block removal is suggested on invoice as long as the vendor invoice to be paid correspond to the same received client billing by job/or master job.

Collected

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Manual Matchpay Special Processing

• Write-offs Full Invoice Write-off – requires manual

release: Write-off column is used as reference (no auto-select)

Partial Invoice Write-off – remaining invoice balance amount remains part of matchpay block processing. (no auto-select)

Example: if $40 of a $100 charge is written off, the system will only require $60 of cash from the client in order to release the $100 vendor invoice.

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Manual Matchpay Special Processing

• Invoice Cost Transfers Partial and full invoice cost transfers from one

job to another remain part of matchpay block processing.

If invoice cost is completely transferred from job A to job B, the block will be on Job B and reflected in the matchpay block report.

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Manual Matchpay Alternative Profile Options

• Manual Matchpay Option 2 Create Matchpay on only single billable jobs Matchpay Processing at Job Level If insufficient funds skip invoice and remove

block on next invoice Auto-proposal on partial transfers/full write-

off

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Manual Matchpay Agency Alternative Profile Options

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• Manual Matchpay Option 3 Create Matchpay on only invoices with at

least one billable job Matchpay Processing at Job Level If insufficient funds skip invoice and remove

block on next invoice Auto-proposal on partial transfers/full write-

off

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Manual Matchpay Agency Work Instructions

Microsoft Office Word 97 - 2003 Document

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Final Bill & Reconciliation

Select the checkbox for Final Bill in the Job Summary section to create a live Final invoice for Progressive/ Reconciliation Billing. The system should automatically set the job status to STBI, Stop Billing.

22

Persuasive Evidence and Calculation Batches – Batch Job ScheduleRevenue Recognition

Batch Process Frequency

• Persuasive Evidence batches

• RR Calculation batches

• Every 15 minutes until work day 1.

• Run each night and at month end closing days -1, 1.

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Persuasive Evidence and Calculation Batches – Month End - Day -1

• Adjustments to WIP, including the Gross Revenue batch job• Changes in persuasive evidence requirements and fulfillment,

including client POs and externally approved estimates• Setting STRR (stop revenue recognition) status

Start

End

Run Gross Revenue

batch

ZRR07

Review aged WIP report

ZAWIP

Review Results

ZRR01, ZSD08 etc

Review jobs in STBI status

ZJ01N

Set STRR status

CJ02 /ZSD19

Maintain PE requirements

ZVARR

Review Persuasive Evidence

ZSD03

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Persuasive Evidence and Calculation Batches – Month End - Day 1

• Changes to the RA key• Changes to contract setting details, i.e. straight-line dates, completion

percentages, etc.• Cash Collectibility

Start

Detail Report Review

ZRR01 / ZRR03

Summary Report ReviewZSD08 / ZSD26

Maintain RA keys

ZCJRR/ZRR08

Maintain straight line

dates

ZCJRR

Maintain completion

percentages

ZCJRR

Maintain proportional performance

ZSD04

Maintain earned monthly scheduleZCJRR

Cash collectibility

ZCJRR

End