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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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