Creating Advertising Contracts

The Advertising Contracts service contains the agreement information between the organization offering the advertising space and the advertiser, which may be an agency or an individual company. The Advertising Contracts record can contain agreement information for one or more advertisement orders for one or more different publications. The following steps discuss the options for creating an Advertising Contracts record.

  1. Open a new Advertising Contracts record from the Advertising Contracts service.
  2. Enter a name for the contract in the Name field.
  3. In the Advertiser field, enter the name of the company contracting for the advertisements.
  4. In the Advertiser Contact field, enter the main contact person from the company for the contract.
  5. In the Agency field, enter the name of the agency (company) representing the company for the advertisement. The agency is listed on the Bill To tab instead of the advertiser's company if the Agency field is populated. If an agency is not used by the company leave the field blank.
  6. If the Agency field is used, enter the name of the Agency Contact.


    The advertiser (or agency, if specified) must have an approved credit limit status in order for Insertion Orders records to be saved. This is because the insertion order is generating a purchase order type order and an approved credit limit must be established before the purchase order can be saved. If you need to update the credit status, you can do so from the contract by opening the advertiser's or agency's Companies record and modifying the credit status.


  7. On the General tab, enter the date the Advertising Contracts record is created in the Applied Date field. The default date is set to the current date.
  8. Enter the date the Advertising Contract is accepted by the Agency or Advertiser in the Accepted Date field.
  9. Enter a Start Date and End Date representing the duration of the contract.
  10. Select a Status for the contract. Status is for informational purposes only, it does not flow down to any other record or field or prevent any order processing.
  11. The optional Short Rate Penalty % field tracks a percentage to charge an advertiser if they decide not to complete their advertising contract after committing to a certain frequency that qualifies for a more favorable rate care rate. The short rate penalty allows the organization to recover any loses for the empty advertising space created when the advertiser cancels their contract before it is completed. The applied penalty is a percentage charge applied above and beyond the difference between the per-insertion rate.

    Short Rate Penalty Example

    Customer A commits to a contract to advertise in 12 publications during the course of the contract term but only advertises in 6 issues. Assume the cost per issue is $1,000 under the 12x Frequency and $1,500 under the 6x Frequency. If the Short Rate Penalty is 10 percent, at the end of the year the customer would be charged the difference between the rates, or $500 per issue plus a 10 percent penalty: (500 x 6) x 1.1= $3,300. The penalty is needed to provide an incentive for advertisers to only commit to frequencies if they really intend to advertise in the required number of issues.


  12. The IO Rate Card AmtIO Actual Amt and Discount IO Rate Card Amt are read-only fields that display the totals from all the insertion orders listed on the Insertion Orders tab of this contract.


  13. Click the Publications tab and add the applicable publications to the contract. See Adding Publications to an Advertising Contract.
  14. Click the Sales Representative tab and add information about the sales representatives responsible for securing this contract. See Adding Sales Representatives to an Advertising Contract.
  15. Click the Comments tab and add any additional information about the contract.
  16. Save the Advertising Contracts record.

Adding Publications to an Advertising Contract

The Publications tab lists the different publications and their selected rate cards and frequencies. For example, if the advertiser wishes to run the same advertisement in several magazines, enter all the publications, the desired rate cards, and the desired frequencies on this tab. At least one Publications record is required on the Advertising Contracts record, but only one Publications record for each publication product can be listed on this tab.

  1. To add a publication (advertising product) to the Advertising Contracts record, open a new Publications record from the Publications tab.
  2. Enter the name of the advertising product in the Publications field. A filter on the Find feature only allows advertising products to be selected in this field.
  3. Enter the name of the Advertising Rate Cards record to tie the specific publication (advertising product) to a specific rate card.
  4. Select a rate card that is associated with an appropriate currency for this contract. The rate card's currency information is passed to the advertising insertion order as well as the orders that are generated when the insertion is saved as approved.
  5. Select a Frequency Code from the list for the product chosen in the Publication field.


    Only the frequencies used in the Rates records on the Rate Card selected are available in the list.



  6. Click OK to save and close the record.
  7. Repeat steps 1 through 6 to add other publication products to the contract as necessary.

Adding Sales Representatives to an Advertising Contract

The Sales Rep tab identifies who is responsible for the contract and who qualifies for the commission on the sale and order. Often more than one person is involved in a contract and the commission is split. The Sales Rep tab tracks the primary sales representative and any subordinate sales representatives for the specific contract. Percentages can be split among the sales representatives.

  1. Click the Sales Representative tab.
  2. In the Primary Sales Rep field, enter the name of the primary sales representative.
    The Sales Representative is automatically added to the sub-type area with a split percentage of 100.
  3. If the advertising sale is split among more than one sales representative, perform the following steps:
    1. In the Split Percentage field, specify the percentage the primary sales representative will receive when a commission is calculated on the insertion order and press the Tab key.
      The primary sales representative's sub-type record automatically updates accordingly.


    2. Add additional sales representatives by right-clicking in the gray area of the Sales Reps tab and selecting New to open a new Sales Representatives record.
    3. Enter or select a person from the Persons service using the Find feature in the Sales Rep field.
    4. In the Split Percentage field, specify the percentage for this sales representative to receive when a commission is calculated on the insertion order.
    5. Enter any additional information about this sales representative in the Comments field.


    6. Click OK to save and close the record. 
    7. Repeat steps 3a through 3f as necessary.



When adding additional sales representatives, the total of the split percentages for all sales representatives cannot equal more than 100 percent.

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