1.
The estimated amounts for each job task include all internal
staff time, outside buyouts, in-house expenses, and other charges.
These amounts are what the client sees--and approves--on the
printed estimate.
2. Change orders account for revisions to the
job's original estimate. They allow the agency to document a
change to the job and get the client's written authorization
for it. They help prevent future disputes after the job has
been billed.
3. Staff hours can be estimated for individual
job tasks. The client may or may not see these estimates, depending
on how much detail the AE displayed on the printed invoice.
In any case, these estimates are useful guidelines to the creative
staff to help them budget their time. The actual hours spent
on these tasks are calculated from time cards and time sheets.
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4.
The Net POs column shows the job's outstanding purchase,
insertion, and broadcast orders. These are orders that have been
committed to, but have yet to be invoiced by the vendor.
5. Vendor buyouts are purchases made on the client's
behalf. They are entered as invoices in Accounts Payable. Only
posted invoices update job reports.
6. Expenses are in-house charges for non-vendor
purchases, such as faxes, tolls, food, and other incidentals.
7. The time cost column shows the total dollars
spent on staff time from time cards and time sheets. The cost
is based on the staff member cost rates, which are optional.
The time cost is not part of payroll, so it is an approximate
estimate of the labor costs incurred to complete each job task.
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8. The total
cost is the sum of outside purchases (i.e., A/P), time costs
(i.e., from time cards and time sheets), expenses, and internal
charges.
9. The outside gross cost column is the sum of
all outside costs including markups.
10. The billings column shows the total amount
billed so far to the client.
11. The unbilled amount is the difference between
the job's gross costs and the billings to date. It is the amount
to be billed during the next billing cycle.
12. The estimate remaining shows the difference
between the job's original estimate plus any change orders,
less the job's billings to date.
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