Defining Advertising Product Rates

All products in Personify360 must have at least one product rate code. Once a product rate code is defined, the product pricing record linked to the rate code can be defined. With advertising products there are properties specific to advertising (i.e., agency discount percentage, sales commission percentage, and frequency fulfillment percentage).

Rate codes also reflect the frequency rate given to the advertiser based on the advertiser’s commitment to purchase a certain number of advertisements over a defined period of time. Examples of typical rate codes defined for advertising products are, 1x, 2x, 12x, etc. Rate codes are defined in System Types and Codes. You can set up the coding scheme for rate codes in whatever format your organization prefers.

Rate codes for classified advertisements can be defined per line or per column inch. If your organization charges for classified advertisements by lines or inches, the rate code should be define to represent the lowest quantity increment. For example, if your organization charges based on half-inch increments, the rate code should be defined as one half inch. A classified advertisement that is one and a half inches would then have the order line quantity set to 3. Order line quantities must be a whole number.

Web advertisement rate codes are usually defined as either term-based, CPM (cost-per-thousand impressions), or CPC (cost-per-click). If a rate is defined as term-based, the length of the term, in months, must be defined if you want to defer revenue recognition. If your organization charges based on CPM or CPC, the initial order line quantity is set to 1, and the number of impressions, or clicks, identified at the end of the month needs to be updated on the order line before the insertion order is invoiced.

If an advertiser is to receive frequency credit for Web advertisements, the rate should be defined based on how the credit is calculated. If the advertiser is to receive credit for each month an advertisement runs, the rate code should be defined as one month. If the advertiser runs an advertisement for six months, six insertion orders should be created so the advertiser gets credit for six insertion orders. If the organization does not do short-rate/rebate analysis on Web advertisement orders, one insertion order could be created, in this example, for a term of six months.

See also:

· Defining Advertising Product Pricing

To define advertising rates:

1. From the Define the Product task category, click Define Rates and Pricing.
The Advertising Product Maintenance Rates and Pricing screen displays, as shown below.

If a default rate has been defined in Rate Structure definition, the default rate code is automatically created by the system. You can define additional rate codes.

2. Click Add Rate.
A new row is added to the grid and the adjoining fields become active.

3. Select the Rate Structure from the drop-down.

4. Select a Rate Code from the drop-down.
The Description defaults to the selected Rate Code.

5. Select a Short Pay from the drop-down.
The option chosen from this drop-down determines which of the following fields are read-only in the Pricing Detail section:

a. Max Adjusted Price

b. Min Adjusted Price

c. Min Price to Activate

d. Max Auto Write-off

6. If necessary, select the Domestic Ship-Via from the drop-down.

7. If necessary, select the Foreign Ship-Via from the drop-down.

8. If necessary, enter the Length In Months in the text box.

9. Select the Pay Frequency from the drop-down.
Values in the drop-down are populated based on the fixed codes defined for the ADV "PAY_FREQUENCY" system type.

10. If necessary, enter the Agency Discount and Sales Commission.

11. Enter the Priority number.

The Priority text box defaults based on its position in the grid, but it is modifiable. The system automatically assigns the rate code with the lowest priority.

12. Check the checkboxes that apply:

· Default Rate

· Web Enabled Rate

· Default Web Rate

· Waive Shipping

· Credits Frequency Fulfillment

· Earned Pages

· Use Pct Fee Calculation

13. Click Save.

Screen Element	Description
Add Rate	Button. When clicked, a row is added to the Rate Code Details table and the corresponding fields are enabled to add a rate code.
Delete Rate	Button. When clicked, the highlighted row from the table and rate code are deleted.
Priority	Text box. Determines the order the rate codes display in the product setup and Insertion Order screen. The rate code with the lowest display order displays first.
Rate Structure	Drop-down. Rate structures identify the type of customer or if the customer is given special pricing. Rate structures here must be defined as part of System Setup. After a rate structure has been defined for the product, this drop-down is disabled and cannot be edited.
Rate Code	Drop-down. The established rate determines the pricing for the rate structure selected. Rate codes differ based on the type of media and advertisement. Print advertisement rate codes could be, 1x, 2x, etc, Web advertisements CPM, CPC, etc., and classified advertisements, HALF_INCH, 1LINE, etc. After a rate code has been defined for the product, this drop-down is disabled and cannot be edited. Values in the drop-down are populated based on the non-fixed codes defined for the ADV "RATE" system type.
Description	Text box. A description of the rate code.
Short Pay	Drop-down. This fixed code indicates how the system handles short payment situations. Linked to the minimum payment amount. This code can be affected by the schedule payment and minimum payment amount. Options include: Adjust: Accept whatever is paid, even if the payment amount is less than the minimum payment. AR: Create Receivable – Indicates that members under the active rate code will be invoiced. Reject: Do no activate order unless fully paid. This should only be enacted if paying the entire amount immediately, rather than monthly. If an order is created, this value can be overridden at the order line level.
Domestic Ship-Via	Drop-down. Specify how the product is to be shipped if the ship-to customers' address is in a country that has been identified as a domestic country. This value is stored in the SHIP_VIA_CODE column in the Product_Rate_Code table. If Product_Rate_Code.DEFAULT_SHIP_VIA_CODE is not null and Product_Rate_Code.WAIVE_SHIPPING_FLAG = ‘N’, the value in Product_Rate_Code.DEFAULT_SHIP_VIA_CODE should default into Order_Detail.SHIP_VIA_CODE if the country of the ship-to address is a domestic country. Values in the drop-down are populated based on the non-fixed codes defined for the ORD "SHIP_VIA" system type.
Foreign Ship-Via	Drop-down. Specify how the product is to be shipped if the ship-to customers' address is in a country that has been identified as a non-domestic country. This value is stored in the DEFAULT_FOREIGN_SHIP_VIA_CODE column in the Product_Rate_Code table. If Product_Rate_Code.DEFAULT_FOREIGN_SHIP_VIA_CODE is not null and Product_Rate_Code.WAIVE_SHIPPING_FLAG = ‘N’, the value in Product_Rate_Code.DEFAULT_FOREIGN_SHIP_VIA_CODE should default into Order_Detail.SHIP_VIA_CODE if the country of the ship-to address is not a domestic country. Values in the drop-down are populated based on the non-fixed codes defined for the ORD "SHIP_VIA" system type.
Length in Months	Text box. For advertisements that last for a specific amount of time, the amount of time is entered here. This will usually be used for web media, exhibitions, sponsorships, etc. This field is automatically populated by the option 1 Frequency field, as defined for the Rate system type and code.
Pay Frequency	Drop-down. The time frame the customer must pay. For example, Invoice indicates the customer must pay when invoiced and Monthly indicates the customer can pay on a monthly schedule. If Monthly is selected, the order is automatically created with a monthly payment schedule but can be overridden on the Order Entry screen. Values in the drop-down are populated based on the fixed codes defined for the ADV "PAY_FREQUENCY" system type.
Agency Discount	Text box. The percentage to be applied for an agency discount when creating an order for this product. This defaults from the Org Unit Setup, but can be overridden at the agency level or contract level.
Agency Commission	Text-box. This is the total agency commission percentage that is calculated for the agency associated with the order lines for this product.
Sales Commission	Text box. If the product is flagged as “Eligible for Commission,” this is the total sales commission percentage that is calculated for the sales representative(s) assigned to the order lines for this product.When a product rate code is defined for an advertising product where the "Eligible for Sales Commission" checkbox is checked, the "Sales Commission" percentage for the rate code is set to the "Commission Percent" defined on the Commissions screen in Organizational Unit Maintenance.
Default Rate	Checkbox. Indicates which rate code should be defaulted for each rate structure. This rate code defaults to the order line unless a contract assigned to the order has an overriding rate code defined. Only one rate code within a given rate structure for a product can have this checkbox checked.
Web Enabled Rate	Checkbox. When checked, indicates that this rate code is available through the Web.
Default Web Rate	Checkbox. When checked, indicates that this rate code is the default for the Web.
Waive Shipping	Checkbox. When checked, the shipping is waived for this rate structure/rate code for this product. For advertising products, this defaults as checked.
Credits Frequency Fulfillment	Checkbox. When checked, indicates that when this product is purchased at this rate code, it will credit the advertiser’s frequency fulfillment. This flag is evaluated by the ADV500 Short Rate/Rebate process, which determines whether advertiser have fulfilled their frequency commitment.
Earned Pages	Checkbox. When checked, identifies that the price is calculated as a percentage of the price of one or more other order lines in the insertion order.
Use Pct Fee Calculation	Checkbox. When checked, indicates that when this product is purchased at this rate code, it will credit the advertiser’s percentage needed to fulfill the contract. Advertising rate card schedules can not be associated with percentage fee pricing.