Trade Accounting User Manual
Contents
1. CLEARCHANNEL Trade Accounting Radio User Manual TABLE OF CONTENTS Introduction How this document is organized Security and Access to the Trade Accounting System Launch the Trade Contract Application Conversion of Trade Contracts from the old system Making old Contracts Active in the New System Additional information on the Conversion Process Adding a New Contract Selection List Panel for Contract Maintenance View Selection Search Box The Contract List Detail Panel for Contract maintenance Contract Header Section Contract Detail Section Notes amp Log Action Buttons Approving Denying a submitted Contract submitted Contract Workflow What happens After Approval of Contract Trade Contract Adjustments amp Contract Adjustment Approval Denial Trade Adjustments Available View Trade Adjustments Search Trade Adjustments Adjustment General Contract Information Trade Adjustments Revenue Adjustment Section Balances Definitions for Information on the Revenue List Trade Adjustments Expense Section Balances Definitions for Information on the Expense List Trade Adjustments Entering a New Adjustment Adjustment to Revenue Adjustment to Expense Journal Entries Account Logic Primary Trade Purpose PTP A2. application to proceed 20 Page Figure 22 Contract for print Save This button will save the data entered but will not advance the contract to the next stage of approval Cancel This button will discard any changes made to the contract since the last save or submit A warning message will be presented to allow return to editing if desired APPROVING DENYING A SUBMITTED CONTRACT SUBMITTED CONTRACT WORKFLOW A contract once submitted by the originator needs to have approval before it is considered active The approval process is multi level and is controlled by the system At each stage of the process the system will notify the approvers via email and also by adding a work item to their worklist which is located on the OneSpace home page The contract can also be accessed directly via OneSpace gt Sales gt Trade Approvers can either approve or deny the contract and add any notes that are desired If approved the system will route the contract to the next level for approval Important If you want to add a note to the contract it needs to be added prior to clicking on the deny button If denied the system will send an email to the originator along with the denial reason The available reasons for denial are shown in the following Denial Reason x Change reauired for Grass Air Time Value Change required for Merchandise Services Value Contract on Hold Contract revoked by Client Delete Contract Mo
3. from Viero by are booked to General Ledger monthly Monthly Expense Allocation according to the expense allocation plan established when the contract was initiated Write off of unused Liability at the end of the month following the month of the contract s expiration date In the case a contract is extended the write off is done at the end of the month that follows the contract extension date 33 Page ACCOUNT LOGIC The following table represents the logic used by the system to determine accounting information Note See Posting Logic Table following for Posting Rule definitions DR CR Posting Account Account Contract Life Date Acct Cycle Event Journal Entry Posting Logic Deptid 1 Establish Contract Liablility amp Contract Asset We 113900 22033005 Rule 1 000 000 Contract 2 Establish Tax Liability only when Use an 214500 Final Apply Sales Tax check box is checked Rule 1 000 Approval 3 Allocate 1st Month s Expense if Expense Use ice prp 113300 Allocation Month 1 has a value gt 0 Rulea 0 000 Revenue Summary posting of all invoiced spots events misc Use 203300 472100 Recognition revenue received for a Contract in previous month Rule2 000 000 Month 2 12 Expense Allocation driven by the Expense Use 113300 Aneense Expense Allocation Method payment month s hates Use 213320 directive 1 Man
4. FMV Fair Market Value Enter the fair market value of the goods or services given in exchange for the airtime Ratio This is a field calculated by dividing the Goods FMV by the Gross Airtime The value of this field should be 1 according to Clear Channel policy meaning that the goods exchanged should equal the amount of the airtime Any deviation from this policy will result in a highlighted message on the screen which will be viewable by the approvers Airtime Services Description Enter a description of the type of airtime or service Clear Channel agrees to deliver to the client Type of Goods Select the type of goods to be received See figure below Figure 16 Type of Goods field expanded Goods Services to be received Enter a detailed description of the goods or services supplied by the Customer in exchange for airtime Expense Allocation Method This field can only be maintained by the Market Controller The available values are as follows Specific months Straight Line 12 months Thru contract end and Thru year end The Goods FMV expense will be allocated and booked to General Ledger according to the method chosen If Specific months is 17 Page selected the amount of the expense will need to be manually distributed over the life of the contract The pop up box see figure below will be displayed so that expenses may be distributed If other methods are chosen the system will fill in the amounts Clicking
5. Template No Auction trade is no longer accounted for as trade Auction Revenue is recorded as the cash is received Booking as the airtime runs in addition to the cash is considered double booking revenues Do Run Bill Payer Through This New Trade Template No per policy Bill Payer revenue should be recognized using the new bill payer revenue accounts No Bill Payer trade agreements will be created through this tool What About National Trade I E Group M National Trade requires a valid trade contract number Best practice is to create a new trade agreement for each Group M trade order in its entirety Example AT amp T sends a trade order for 20 000 to run February June Market personnel should enter a trade agreement into the tool for AT amp T at 20000 for February June This must be done because there is no corporate trade agreement in place with a valid number for Group M due to the fact that the original deal did not have a total amount for the two year period Who Is Responsible As Local Administrator The business office market controller role will be the local administrator as far as training and a resource for local questions Questions that can t be answered at the local level should be routed to tradetoolsupport clearchannel com 39 Page What is the local market responsible for completing for month end 40 Page Trade revenue no longer needs to be input manually at the local level from Viero reports
6. a system generated history of actions on the contract This can be useful in tracking the approval process 19 Page ACTION BUTTONS D T Figure 20 Action Button bar Submit This button is only active for roles that can create contracts and when the contract can be moved to the next level for approval Approve This button is only active for roles that can approve contracts and for contracts are in condition to need approval Deny This button is only active for roles that can approve deny contracts and for contracts that are in a condition that allows denial If denied the reason needs to be selected When the Deny button is clicked a denial reason pop up will appear Select a reason and click Ok See figure below Denial Reason Change reared for Gross Air Time Value Change requad or Serius Valie Contract on Conner raved by Chant Delete Contract More detai nedad for what Clear channel promises to provide Nota investment Contracts End Date has passed beer final Approval was granted Figure 21 Denial reasons expanded Print The Print button is only active on Approved or Expired contracts Clicking this button will produce a PDF file with the appropriate legal language Data from the system will be prefilled Please note If you receive an error message about allowing a pop up for the OneSpace site you will need to allow pop ups and re enter the Trade
7. review the contract for accuracy and verify that the airtime goods ratio is acceptable EVPO If the contract exceeds the threshold established for General Manager s approval the system will notify the appropriate EVPO Otherwise the system will notify Broadcast Accounting The EVPO will review the contract for accuracy and verify that the airtime goods ratio is acceptable Corporate Accounting Once Broadcast Accounting has approved the contract it is Active and available for use in orders See section on Trade Contract Validation for further information on orders in Viero WHAT HAPPENS AFTER APPROVAL OF CONTRACT After Corporate Broadcast Accounting approves a Trade contract the system will perform the set up journal entries for the Liability and Asset Accounts the Sales Tax Liability if one is set up These journal entries will be passed automatically into General Ledger In addition if there is an amount to expense in the first month the expense journal entry will also be booked to General Ledger After approval the contract will be immediately available for order entry in Viero The contract number will be available and the contract will be able to be printed for customer signature 22 Page TRADE CONTRACT ADJUSTMENTS amp CONTRACT ADJUSTMENT APPROVAL DENIA The Trade Adjustment application is available for Market Controllers and Broadcast Accounting to view accounting transactions performed against the Trade Contract Th
8. 1 2010 Last day of month when Monthly Expense Allocation job runs Example Monthly Expense Allocation Batch Job run date is 6 2 2010 gt JE Posting date 6 30 2010 36 Page POSTING DATE CONTROL TABLE The posting date is determined by the system for automated and manual entries with a combination of the date the transaction was entered compared to the Corporate Accounting cut off date the Field cut off date and applying the following control table Please note This table s contents are directed by Broadcast Accounting and will be maintained by AIS They are subject to change according to the business schedule determined by Broadcast Accounting Deadlines will be communicated to the markets for each Close schedule Field cud corp Cutoff Posting Date Posting Date we cutta rad Workday Workday Field Cutoff is Cutoff is 2 3 met NOT met EXE we sm chm 4 30 11 sayn E o sv sp 6 30 11 ou mm 7 6 11 6 30 11 EXE sm 8 3 11 8 31 11 E 5 vun opm en saon syn os 9 30 2011 10 31 2011 ym 10 31 2011 11 30 2011 E Dec i2 1 33 ai 12 511 1130 2011 12 31 2011 TRADE CONTRACT VALIDATION Orders for Trade revenue or Misc Trade will need to have a valid active Trade Contract number in order to be processed At time of order entry the Account Executive will be presented with a list of active contracts that ca
9. 10 31 2010 Example Contract begin date 12 1 2010 Contract approval date 11 5 2010 gt JE Posting date 12 31 2010 Last day of previous month from run date of Monthly Revenue posting job Example Monthly Revenue Posting Batch Job run date is 6 2 2010 Daily revenue revceived 5 12 2010 gt JE Posting date 5 31 2010 Last day of month when Monthly Expense Allocation job runs and Contract has a non zero value for current Allocation Expense Plan month Example Monthly Expense Allocation Batch Job run date is 4 7 2010 Contract approve date 1 15 2010 Contract end date 12 31 2010 JE Posting date 4 30 2010 Posting Date is based on Trade Acctg Financial Calendar directives for Corporate Acctg approval_and Market s field entry of adjustment Example A Field enters Trade adjustment on 9 28 2010 Corp Acctg approves adjustment on 10 1 2010 gt JE Posting date 9 30 2010 Example B Field enters Trade adjustment on 9 29 2010 Corp Acctg approves adjustment on 10 2 2010 gt JE Posting date 10 31 2010 Example C Field enters Trade adjustment on 10 26 2010 Corp Acctg approves adjustment on 11 5 2010 gt JE Posting date 11 30 2010 Example D Field enters Trade adjustment on 11 1 2010 Corp Acctg approves adjustment on 11 2 2010 gt JE Posting date 11 30 2010 Example Field enters Trade adjustment on 11 24 2010 Corp Acctg approves adjustment on 12 3 2010 gt JE Posting date 12 3
10. All trade revenues will load into the trade tool automatically during month end The markets are responsible for review and initiating any adjustments needed i e write off contract as advertiser is out of business market cancelling contract contract written in error no trade agreement needed Does my BSA still need the Trade revenue report from Viero In the first month of conversion please send the Trade report from Viero to your BSA for conversion testing of the revenue transfer We ll update you once that report is no longer a requirement of month end Do we still need to get Katie Holloway s approval for Employee related trade personal trade Markets are still required to obtain and maintain email approval from Katie on file for trade agreements entered into for the purpose of employee usage CONTACT INFORMATION For access security issues system performance issues or browser problems contact the Clear Channel Help Desk at 1 888 271 2395 For Trade business related questions or Clear Channel Radio accounting policy questions contact Broadcast Accounting at TRADETOLLSUPPORT 2CLEARCHANNEL COM al Page
11. E Expand the Expense Adjustment section on the Trade Adjustments application and click on the add See Figures 29 and 30 for more information on expanding the sections A pop up entry box will appear B1 Page Add Expense Adjustment DR Account CR Account Adjustment Reason 3007 Denial Reasion 2 8651007731 Client in 413300 000 Figure 36 An adjustment to the Asset balance Expense adjustments to the Asset balance should only be made to accelerate the Expense Allocation plan originally entered at the time the contract was established and approved Therefore only a positive entry should be made The amount entered will cause a debit to the Primary Trade Purpose account This account is defaulted to the original trade purpose of the contract but can be modified on an adjustment A credit will be made to the asset account 32 Page JOURNAL ENTRIES The Trade system causes journal entries to be entered into General Ledger throughout the life of the contract as follows Atinitial contract approval o Establish original Liability GAAP amount Liability adjusted by ratio o Establish original Asset amount o Recognize first month of expense allocation against asset if first month needed in allocation plan o Establish Sales Tax liability if sales tax is identified by Market Controller Monthly Trade revenue recognition Trade Invoice lines are brought over into the Trade system daily
12. able for adjustments Contracts are displayed in conjunction with the market chosen or for All Markets lists all markets applicable to the user logged in Negative liability Lists all contracts with a negative liability balance This indicates that the customer has been invoiced for Trade revenue exceeding the agreed to contract amount Active Lists all contracts that are approved and not yet expired Contracts to close Lists all active contracts that are schedule to expire in the next month Expired contracts Lists all contracts that expired in the last 90 days that have a zero liability balance Pending Approval Lists all contracts that have an adjustment pending approval from Corporate Accounting TRADE ADJUSTMENTS SEARCH The search field above the contract list acts as an additional filter to narrow down the list of available contracts You can search on Customer Name BU description i e call letters and contract number The search will work both for a complete description of any of the above fields or for a partial description For example a search of W will return a list of all contracts with a w in the BU description and also will include contracts that are associated 24 Page with customer names that contain a w Be as specific as possible in order to find the contract needed Please note The customer name is governed by the Customer master file and reflects the legal name For
13. action required is to select the market you wish to work with Planning Figure 3 Trade Contracts when user has access to more than one market If you have access to only one market or have used the drop down box to select a market on the contract list panel on the left the following screen will display 6 Page WIMN FM Boston 3889132 3899135 3899294 Figure 4 Initial Trade Contract Screen during conversion 7 Page CONVERSION OF TRADE CONTRACTS FROM THE OLD SYSTEM Implementation of the new Trade system will replace the old system and access to the ald system will be discontinued All contracts in the old system that are active not expired and have an airtime liability that has not yet been invoiced will be converted to the new system All other contracts will remain in the old system and be available for reporting only Fast path for Conversion 1 Launch Trade under the Sales menu in OneSpace 2 Select Market if you have access to more than 3 Selecta contract on the left panel 4 Add the Customer 5 the Type of Goods 6 Save Make sure you finish converting all the contracts before the deadline set by Corporate Accounting MAKING OLD CONTRACTS ACTIVE IN THE NEW SYSTEM The new system has two new data fields that are different from the old system and need to be input in order to make the contract active in t
14. age DETAIL PANEL FOR CONTRACT MAINTENANCE The contract detail panel consists of 4 major sections the summary or header information the detail notes amp log and the action buttons All mandatory fields are surrounded by a red outline and must be completed before Save or Submit Detal Figure 10 Contract Detail Panel CONTRACT HEADER SECTION lick harate display drop wf wmit BuDesenpten Primary Trade Purpose 54222 W2065 FM Boston MA 94212WWKOY AM Boston 19621 3 WIMN FM Boston 9421 4ANTR Boston 94215 WOKS AM Boston 94219 CC Traffic Boston Ena Date 1 17 gazzo shared Services Boston Purpose Sub Category s 1099 Reportable No Aktime Services Desc Select the Business Unit associated to the proposed contract from the drop down list The list of business units is formed by the access granted to the individual user The business unit chosen will govern where the liability associated trade revenue and expenses are recognized Figure 11 BU selection The new system has added a Trade Purpose Sub Category Once a Primary Trade Purpose is selected the drop down box of the sub category will reflect only the appropriate choices for the Primary Trade Purpose See the below table for reference M Page ary Trade Purpose Purpose Sub Category Client gifts Client Incentives taxa
15. ble to client Tickets for clients only station personnel not attending Company Function Employee Picnic Entertainment Holiday Party Employee Related taxable to employee Employee Bonus Compensation Furniture Other Capital Other Vehicle Tickets Promotional Giveaway Prizes 1099 c ccs info required Tangible Goods Products Products Goods Office Equipment Leases Supplies including generic printing Services 1099 able Cleaning maintenance services Event Sponsorship Lawn care Snow removal Other Outdoor Taxi Advertising or Other Advertising Print Promotional goods shirts trinkets banners etc Telecom TV Advertising Travel amp Entertainment Client business meeting CC Internal Business Meeting Client Entertainment station personnel attending Travel Figure 12 Trade Purpose Categories and Sub categories 15 Page Click on the search icon located in the Contract Header section to select the customer associated to the Trade contract This will launch a pop up box that will allow you to search for the correct customer The list provided will return all customers that contain the value typed in the search box for the Market selected customer aelealonpop upbos Figure 13 Selecting a customer for the Trade Contract The 1099 indicator is set to Yes only when the Primary Trade Purpose i
16. ccounts Posting Date Logi Posting Date Control Table Trade Contract Validation Appendi Frequently Asked Questions Contact Information 3 Page INTRODUCTION The Trade Accounting system has been implemented to track the Radio Trade agreements improve the approval process and to ensure accounting for these agreements is accurate and timely This document will contain more detailed information on each of the system features For quick reference the system will have the following components Trade Contract validation at time of Order The Viera system will ensure that a valid Trade contract exists by returning a list of contract identification numbers and remaining liability balances to the user entering the order Trade Contract Maintenance application A OneSpace application that allows entry of new Trade agreements facilitates the workflow of the approval process and allows initial contract set up such as expense allocation and sales tax liability Trade Contract Adjustment application OneSpace application that allows viewing of all revenue and expenses transaction and adjustments along with the ability to make additional adjustments as needed Adjustments entered in the field will flow to Broadcast Accounting for approval Once approved the adjustment journal entry will be posted to General Ledger Automated recognition of Trade Revenue As Trade line items are invoiced and processed they will be auto
17. d contract ADDITIONAL INFORMATION ON THE CONVERSION PROCESS The conversion process will only be available for a limited amount of time It is important to ensure that all the contracts in your market have been converted so they will be available to use in the Viero system for Trade orders and invoices Broadcast Accounting will be running reports to ensure that all converted contracts have been completed before the this function is disabled in the system If you experience any problems with this function please contact Broadcast Accounting at TRADETOOLSUPPORT CLEARCHANNEL COM ADDING A NEW CONTRACT SELECTION LIST PANEL FOR CONTRACT MAINTENANCE es contrasting Figure 8 Contract Selection List Panel As described before the Trade Contract application has 2 major sections the Contract Selection List and the Contract Detail section If there is access to more than one market you will be required to select a market from the list provided VIEW SELECTION The default view during the conversion process will be Convert After all contracts have been converted from the old system the default view will be In Process The contracts presented in the list are sorted by the Station 10 the Contract oldest contracts will be presented first and then status View Selection Contracts Included for Market selected Lists all contracts moved from the old system but not yet completed in the new system The
18. displayed to help select the appropriate customer Figure 5 Customer selection pop up panel Type the customer name into the search field The system will display a list of customers with customer names that contain the information that you typed in the search field For example if you typed Jones into the search field the system would list both Jones Used Cars and John Jones Barbeque along with any other market customer with Jones in their title Select the customer that matches the contract and click on select The pop up panel will close and the customer information will be populated on the Trade Contract screen Update the text in the Airtime Services Description box as needed The final field needed to make a converted contract active in the new system is the Type of Goods Figure 6 Type of Goods field expanded Select the type of goods that corresponds to the description provided Click on the Yes button to proceed A confirmation message will appear with a warning See Figure 7 Once the converted contract has the ad ional 10 Page information entered and is saved the content cannot be changed A refresh of the contract selection list will list only the contracts that have not been completed Confirmation No edits possible on Save of converted contract Are you sure you want to Save Do you want to continue Yes No Figure 7 Warning message when saving a converte
19. e red circle on figure below 9 Figure 29 Revenue section expanded Information displayed is in reverse chronological order so that the most recent entries will be displayed first As in the above example contracts converted from the old Trade system will have a line reflecting summarized revenue activity from the old Trade system In the example above the sum of all the revenue and adjustments made in the old Trade system was 2 000 The date shown is the date of the conversion Information on the detailed transactions from the old Trade system can be found via the old reports or by contacting the AIS group BALANCES The Liability Balance amounts are shown on the right hand of the Revenue section Original Liability Balance 4 740 00 Current Liabilly alence 88 164 00 Pending Approval Liabilty Balance 0 044 00 Figure 30 Balance section for Liability 26 Page The Original Liability Balance reflects the contract airtime amount entered when the contract was established and approved The Current Liability Balance reflects the balance of all automated revenue entries such as the daily revenue feed from Viero invoice lines and the monthly write off of unused liability after contract expiration It also includes all approved manual adjustments to revenue The Pending Approval Liability Balance represents the Current Liability Balance plus any proposed manual revenue adjustments not yet approved In the above exam
20. eed abe to 19 000 009 other Coal 565100 731 Promotonl vestes 1099 565400 78 Pofuct cones 565100 731 Services 1099 able 5200 7 Travel amp Figure 34 A positive adjustment to Liability On a positive entry the amount entered will cause a debit to the Liability account and a Credit to the Primary Trade Purpose Account The credit will default to the original Primary Trade Purpose as entered on the contract but can be modified at time of adjustment to a different account The Adjustment reason is a required field and must reflect why the adjustment needs to be made Revenue adjustments may be required if an invoice line for Trade is processed without a valid contract id This will continue until the Contract Validation feature is in place in Viero Fusion that requires entry of a valid contract number at order time Add Revenue Adjustment Type Adjustment Reason Amount 10 00 GAAP Amount Am x Ratio 1000 Denial Reasion DR Account CR Accourt 203300 000 Note Accounts have automatically been changed Figure 35 A Negative adjustment to Liability A negative adjustment will cause a Debit to the Primary Trade Purpose account As above it will be defaulted to the contract Primary Purpose but can be modified on adjustments A Credit will be made to the Liability Account The Note on the screen is for informational purposes only ADJUSTMENT TO EXPENS
21. ese include the set up journal entries for converting the contract from the old system automated recognized Trade revenue from Viero automated expense allocation against the initial asset automated write off of liability balance after contract expiration manually entered revenue and manually entered expense adjustments This application can be found under the General Ledger menu category along with supporting reports Contract Commit Crt Edit Contract Commit Reports GL Create Journals TestliewPage Actions GL Create 1oumals Search TestNewPage GL Create Journals PM MBR 1nitialize MBR Enter Data MBR Maintain Station Info Trade Adjustments ENS Old Create contracts Trade Contracts Mee Old Revenue Adjustments Trade Reports Old Trade Reports CCT New Business me eq 7 Figure 24 Menu for Trade Adjustments The Trade Adjustment application opens with an initial view of the contracts pending action for all the markets the user has been granted access to 23 Page Figure 25 Initial view of Trade Adjustment If no contracts exist for the view criteria selected a message will be displayed Information No contracts were found for Market Bakersfield CA with Status Pending Approval Figure 26 Message displayed if no contracts fit criteria selected TRADE ADJUSTMENTS AVAILABLE VIEWS There are multiple ways to view the contracts avail
22. example BKG Limo may be the name of that the customer uses but BKG Limited is the legal name on the customer file TRADE ADJUSTMENTS ADJUSTMENT GENERAL CONTRACT INFORMATION Specific information on the contract selected in the list will appear on the right hand side of the screen The top section reflects the general information on the contract This section can be collapsed or hidden via the use of the double up arrow icon on the right Likewise clicking on the double down arrow will expand the section when it is collapsed The information displayed in this section of the screen is not updateable peT HICI HL I HL EIEEEEEEER E Mead Peng roots IU NT Figure 27 Trade Contract General Information Expanded Se oe E IIT EE E wa fev Ad ering Arron Tete Sumon zemeoona sesieo m Figure 28 Trade Contract General Information Collapsed 25 Page TRADE ADJUSTMENTS REVENUE ADJUSTMENT SECTION Directly under the general Contract Information section is the information on all revenue recognition and revenue adjustments for the contract selected The default view is that the Revenue section will be expanded and the Expense section is collapsed Only one of the adjustments sections can be expanded at a time To switch the view to the other section click on the icon in the upper right corner of the section Se
23. follow 4 Page SECURITY AND ACCESS THE TRADE ACCOUNTING SYSTEM The Trade Contract applications are accessed via OneSpace under the Sales menu category Trade Contracts launches the maintenance and approval functions Trade Adjustments launches the Adjustment application The Trade application recognizes two aspects of security that are maintained in the PeopleSoft Human Resources system as primary and secondary roles role and market access Market access is granted to each individual according to the roles they are assigned Roles applicable to the Trade system are as follows Market Controller Figure 1 Role Access by Function Questions about access to markets and or Trade Accounting functionality should be addressed to Broadcast Accounting at TRADETOOLSUPPORT CLEARCHANNEL COM 5 LAUNCH THE TRADE CONTRACT APPLICATION From the OneSpace home page click on the Sales menu category and select Trade Contracts Market Controllers and Broadcast Accounting users can also find the Trade options under the General Ledger menu category Please note the menu categories and menu items on your OneSpace page may vary according to the access and permissions that you have been granted Figure 2 Trade Contracts in OneSpace The initial display of the Trade Contract screen depends on the access you have been given If you have access more than one Radio market the first
24. he new system the Customer ID and the type of goods traded 8 Figure 5 1 Trade Contract Screen during conversion The default view for the Trade contract screen during conversion will display a list of the contracts that have been converted from the old system but that still need additional information added before becoming active in the new system As each of the contracts is converted they will not be displayed in this view The other views available on the screen will be discussed in the next section of this document Select a contract from the list by clicking on the contract line This will display the detail of the selected contract in the panel on the right of the screen Fields needing to be updated are highlighted with a red outline Click on the button to select a customer Figure 4 Contract selected to complete conversion process The contract selected will be highlighted on the contract list as the details are displayed on the right The old system identified the customer or advertiser as a free text field The new system requires an exact match of customers to the identification number used in Viero and Accounts Receivable The text from the old system has 9 Page been moved into the text field to help associate the correct customers with each contract Using the text provided click on the edit button located next to the Legal Name field see red arrow on figure 4 A pop up panel will be
25. ll be blank for conversion TRADE ADJUSTMENTS ENTERING A NEW ADJUSTMENT The new Trade allows manual adjustment to be entered on both the expense and revenue sides of the contract by Market Controllers and by Broadcast Accounting Adjustments entered in the field by Market Controllers are routed to Broadcast Accounting for approval prior to entry into General Ledger ADJUSTMENT TO REVENUE Expand the Revenue Adjustment section on the Trade Adjustments application and click on the add See Figures 29 and 30 for more information on expanding the sections A pop up entry box will appear Add Revenue Adjustment Type Adjustment Reason Amount 000 GAAP AmountiAmt Ratio 5000 Denial Reasion DR Account a 565100 731 Client In CR Account 203200000 Figure 33 Add Revenue Adjustment entry box Fields that are required before an adjustment can be approved are highlighted in red Amount and Adjustment Reason The amount field in revenue can be either a positive or negative number depending on the desired effect of the adjustment A positive entry in an adjustment will decrease the Liability balance similar to recognizing revenue against the contract 30 Page Add Revenue Adjustment Adjustment Reason Amount GAAP Amount Amt x Ratio Denial Reasion DR Account a 203300 000 CR Account 21800731 Company Functor Employee Entertainment 52130 731 Elves R
26. matically entered into the Trade system as transactions These transactions will be summarized monthly for each contract and entered as a Journal Entry into the General Ledger Automated allocation of Trade Expenses According to the allocation method chosen at time of contract set up journal entries will be created and posted automatically to the General Ledger monthly Automated write off of excess liability at time of expiration Monthly the excess liability on contracts that have expired in the previous month will be written off and posted as a journal entry to General Ledger Conversion from the old Trade Accounting System Active contracts from the old Trade Accounting system will be transferred to the new system to enable the automation of revenue expense transactions and write off of excess liability Since the new system requires a few additional pieces of information the Contract Maintenance application will be used to collect the additional info once the data has been transformed into the new system HOW THIS DOCUMENT IS ORGANIZED This document is designed to be read in the order of the use of the system components It begins with a brief description of security and access Conversion will be covered next followed by Contract Maintenance amp Contract Approval Contract Adjustments amp Adjustment Approval Automated Journal Entries and Contract Validation A section containing Frequently Asked Questions and contact information will
27. n be selected from to associate to the order Points of validation include 5 contract active Contract must be approved and the contract period must be active for the date of order entry 37 Page 5 contract number associated to the same customer as the invoice The customer number identified for the Trade contract must be the same as the customer associated to the order Is remaining liability balance enough to cover order amount Amount of order line must be less than or equal to the liability balance of the contract at time of order 38 Page APPENDIX FREQUENTLY ASKED QUESTIONS Who Validates Converted Balances Broadcast Accounting will be responsible for validating balances converted correctly and will contact you with any issues Can Airtime Be Run Before A Contract Is Fully Approved In The New Process No airtime can air until the contract has been fully approved through workflow and a contract number generated Radio Fusion requires a trade contract number on the order before it can be processed The Trade Contract will be available for orders and contract validation immediately on final approval Am I Required To Still Get A Client Signature As a best practice i e highly recommended from management markets should continue to print the agreement out of the new system and obtain client signature for local filing i e maintained in each customer s trade file Do I Run Auction Trade Through This New
28. n on the right hand of the Revenue section 28 Page Original Asse Balance 4 740 00 Current Asset Balance 5789 00 Fending Approval Asset Balance 8769 00 R Figure 32 Balance section on Asset Expense section The Original Asset Balance reflects the contract airtime amount entered when the contract was established and approved The Current Asset Balance reflects the balance of all automated expense entries such as the monthly expense allocation entries It also includes all approved manual adjustments to expense The Pending Approval Liability Balance represents the Current Liability Balance plus any proposed manual revenue adjustments not yet approved The balance section for Liability works in the same way DEFINITIONS FOR INFORMATION ON THE EXPENSE LIST Fields for the Revenue Transaction are as follows Entry Date Date the transaction was entered in the system Posting Date Date the transaction posted to General Ledger N A will show in case of conversion and Expense allocation lines reflecting pending adjustments entered in the field but not yet approved by Corporate Accounting Type Available types are as follows o EXP Conversion Represents a summary of the expense allocation activity from the old Trade system o Auto Exp Reflects transactions that are recognizing monthly expense allocations according to the expense allocation plan of the contract o Exp Adj A manually entered adjustment A po
29. ods received on the contract DR CR Account Reflects the accounts booked to General Ledger for the transaction This will only be filled in when the Journal entry is created It will be blank for conversion TRADE ADJUSTMENTS EXPENSE SECTION To switch to the view of the Expense transaction section click on the icon in the lower right hand corner of the screen as is outlined in the figure 29 above The expense section reflects the entries that are made according to the expense allocation plan entered at the time a contract is approved As each of the allocations is processed an entry will be posted monthly to the General Ledger according to the plan In addition the allocation plan can be accelerated by entering a manual expense adjustment ent in Figure 31 Expense section expanded Information displayed is in reverse chronological order so that the most recent entries will be displayed first As in the above example contracts converted from the old Trade system will have a line reflecting summarized expense allocation activity from the old Trade system In the example above the sum of all the expense allocations and adjustments made in the old Trade system was 3 500 The date shown is the date of the conversion Information on the detailed transactions from the old Trade system can be found via the old reports or by contacting the AIS group BALANCES The Liability Balance amounts are show
30. on the edit button the pencil icon on the right will allow the user to see the distributions but not edit them Expense Allocation Method Specific months Check to Apply Sales Ta Straight Line 12 months Thru contract end Thru year end Figure 17 Expense Allocation Methods and edit button Expense Allocation ary 2011 5 September 2011 5 October 2011 5 November 2011 6 January 2012 S 0 00 v 00 0 00 Balance 510000000 Figure 18 Edit expense allocation Amounts distributed overcontract months must equalGoods FMvto activate Ob button Sales Tax checkbox This field can only be maintained by the Market Controller Check here if there should be sales tax applied to the contract If the box is checked a sales tax percentage amount is required Tax rate If sales tax is checked enter the tax percentage in decimal form For example a tax rate of 8 596 would be entered as 085 18 Page NOTES amp LOG to adda note lick on Notas or Log to choose view Figure 19 Notes and Log Notes are available to add and are displayed in reverse chronological order They are free text and can be used to communicate further detail on the contract or as messages to the approvers For example if a contract approval needs to be expedited the note should contain the reason Customer desires airtime to be run tomorrow The log contains
31. ple the Current and Proposed balances are in red This indicates a negative liability meaning that the airtime run has exceeded the original contract amount Positive balances will appear in black The balance section for Expenses works in the same way DEFINITIONS FOR INFORMATION ON THE REVENUE LIST Fields for the Revenue Transaction are as follows Entry Date Date the transaction was entered in the system Posting Date Date the transaction posted to General Ledger N A will show in case of conversion Revenue lines not yet summarized to General Ledger and pending adjustments entered in the field but not yet approved by Corporate Accounting Type Available types are as follows o o o Rev Conversion Represents a summary of the revenue activity from the old Trade system Auto Rev Reflect an invoice line with a Trade revenue or Misc Trade These entries are summarized and booked to General Ledger monthly but are extracted from Viero invoices daily Rev Adj A manually entered adjustment A positive entry represents recognized revenue which decreases the remaining liability balance A negative entry represents a correction that will increase the remaining liability balance Write off The remaining liability balance will be written off the month after the contract expires Reports are sent out to the market controllers and to Corporate Accounting on all contract set to expire within 60 days This will give prior
32. re detail needed for what Clear Channel promises to provide More detail needed for what Client promises tc provide Not good investment Ratio does not comply with Corporete Trade policy of 1 to 1 Contract s End Date has passed before final Approval was granted Inactive Market Controller AE must resubmit contract when new MC is identified Figure 23 Trade Contract Denial reasons 21 Page Contract Originator Once the contract information is entered the originator clicks on submit to forward the contract for approval Clicking on Save will retain the contract in the originator s worklist Sales Manager or Sale Manager Group If the contract originator is an AE or AE Assistant and designated the Priority Flag the system will notify all the Sales Manager for the Market to ensure that the contract is expedited Otherwise only the originator s Sales Manager will be notified The Sales Manager will review the contract for accuracy and verify that the airtime goods ratio is acceptable Market Controller The system will notify the contract originator s Market Controller The Market Controller will review the contract for accuracy and verify that the airtime goods ratio is acceptable If the contra approvable the Market Controller will designate the appropriate Expense Allocation method and as needed a sales tax percentage General Manager The system will then notify the Market s General Manager The General Manager will
33. s Services This indicates that when the services provided by the customer are used they will need to be reported as 1099 The priority flag should be checked as an indicator to escalate the approval process Checking this box will route the contract to all Sales Managers in the market If the box remains unchecked the contract will be routed only to the originator s supervisor for approval Figure 14 1099 Indicator amp Priority Flag CONTRACT DETAIL SECTION Figure 15 The Contract Detail Section Begin Date Enter the date the agreement should go into effect This date has to be from the first day of the month the contract is entered to not more than the last day of the following month 16 Page End date Enter the last date the agreement should be in effect This date has to be after the Begin Date and cannot be later the 13 months after the begin date Extension Date The Extension Date and Reason can only be edited by the Market Controller A contract can only be extended past the originally approved end date up to 90 days It can only be extended once and must have an extension reason Extension reason The valid values are as follows Airtime still owed and Goods not received Gross Airtime Enter the value of the airtime or services that Clear Channel is liable to deliver to the customer This is the full amount of the airtime or service not the GAAP amount Goods
34. se contracts are not considered active until the additional data is Convert added Lists all contracts added in the new system that have not yet been approved In Process through workflow Approved Lists all contracts approved and active Canceled Lists all contracts that were denied or canceled by the originator Closed Lists all contracts that have expired 12 Page SEARCH BOX The search box allows the list to be narrowed by limiting the contracts listed to the ones that contain the information typed into the box For example if Jone is typed into the search box all the contracts with customers that contain jone somewhere in there description will be displayed in the list i e Jones Plumbing Joe Jones Pools etc This search box works on business unit descriptions such as call letters on contract numbers and on the customer description to pinpoint the contract that needs to be displayed THE CONTRACT LIST The contract list can also be sorted by Station ID Contract number and status by clicking on the header titles of the columns Note Contract numbers will only be displayed as Pending until the contract is approved for usage Also contracts from the old Trade system will have an id less than 4000000 If there are no contracts that match the selection criteria of Market Status view and or the search information the list will be blank Figure 9 Contract List 13 P
35. sitive entry represents an accelerated expense allocation o Exp First Month This transaction is accomplished at the time the contract is first approved and made active The first month of expense allocation will be processed if there is an amount in the first month of the allocation plan Status and Reason Reason is free text entered by either Market Controller or Corporate Accountant Statuses follow o Pending Approval Adjustment manually entered in the field but not yet approved by Corporate Accounting Denied Adjustment manually entered in the field denied by Corporate Accounting In Process Adjustment transaction not yet processed through to General Ledger o JE Error Adjustment that could not be inserted into General Ledger due to error These cause an internal notification to the AIS team to correct 29 Page JE Complete Adjustment fully processed into General Ledger Audit If manual adjustment this field represents the last user and date that the transaction was entered If a system generated entry the audit field will reflect Import on conversion and Monthly Expense on the monthly expense allocation batch job Amount This reflects the dollar amount of the transaction It represents recognition of an expense allocation DR CR Account Reflects the accounts booked to General Ledger for the transaction This will only be filled in when the Journal entry is created It wi
36. ual Liability adjustment for Contracts with Revenue remaining balance gt 0 User would Use 203300 prp enter a positive amount in the UI amount field Ruled 000 on the adjustment UI 2 Manual Liability corrective adjustment for Contract invoiced spots events misc revenue that T 20 300 Adjustments overrun Contract s Air Time Value User med Ue PT would enter a negative amount in the UI amount field on the adjustment UI 3 Manual Expense Allocation corrective Use jse prp 113300 adjustment Rule 4 000 Contrat automated Write Off when Contract is expired use 203300 Liability Use and Liability balance gt 0 Rules 000 Write Off s 34 Page PRIMARY TRADE PURPOSE ACCOUNTS Primary Trade Purpose Account Client Incentives 565100 731 Company Function Employee Entertainment 521300731 Other Capital 195000 000 Outing Promotional Giveaway Prizes 565100 731 Products Goods 565400 731 Services 565100 731 Travel amp Entertainment 521100 731 35 Page POSTING DATE LOGIC End of Month last day for month that Contract s final approval occurred OR End of Month last day of month of Contract s begin date month Example A Contract begin date 11 1 2010 Contract approve date 11 19 2010 gt JE Posting date 11 30 2010 Example B Contract begin date 4 15 2010 Contract approval date 10 5 2010 gt JE Posting date
37. warning so that an extension can be made or so that airtime can be scheduled to avoid a write off condition Status and Reason Reason is free text entered by either Market Controller or Corporate Accountant Statuses follow o Pending Approval Adjustment manually entered in the field but not yet approved by Corporate Accounting Denied Adjustment manually entered in the field denied by Corporate Accounting In Process Adjustment transaction not yet processed through to General Ledger JE Error Adjustment that could not be inserted into General Ledger due to error These cause an internal notification to the AIS team to correct JE Complete Adjustment fully processed into General Ledger Audit If a manual adjustment this field represents the last user and date that the transaction was entered If a system generated entry the audit field will reflect Import on conversion Daily Revenue on automated revenue and Monthly Write Off on write off 27 Page Amount This reflects the dollar amount of transaction the amount is positive it represents recognition of revenue or an adjustment that reduces the remaining liability balance If the amount is negative it represents an adjustment that would add to the liability balance GAAP Amount This reflects the adjustment GAAP amount which is the Amount adjusted according to the ratio of the original airtime liability to the Fair Market Value Go
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