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How to set up accounting for Media

Media accounting uses Work in Progress (WIP) accounts to hold booked activity until client and supplier invoices are approved. Setting up the correct general ledger accounts ensures accurate posting of media revenue, costs, and profitability.

Steps to Set Up Accounting for Media

  1. Go to NAVIGATION BAR > SET UP FILES > General Ledger > Chart of Accounts.

  2. Create or confirm the following accounts are available:

    • Client WIP Account: Holds billable media until client invoices are approved.

    • Supplier WIP Account: Holds payable media until supplier invoices are approved.

    • Media Revenue Account: Recognizes media sales when client invoices are approved.

    • Media COGS Account: Records supplier media costs when supplier invoices are approved.

    • Service Fee or Commission Account (if applicable): Tracks service fees or markup commissions shown on client invoices.

  3. Assign these accounts in your media configuration so transactions post automatically.

  4. If your agency uses Media Sales Less COGS Accounting, confirm that revenue will post net of costs instead of posting both gross.

  5. Test the setup by creating a sample booking and processing both a client and supplier invoice to ensure WIP clears correctly.

Key Concepts

  • WIP Clearing: All bookings post into WIP accounts until invoiced. Approval of invoices clears WIP and posts to AR/AP.

  • Two-Sided Accounting: Both client and supplier invoices tie back to the same schedule, ensuring profitability is tracked.

  • Commission and Service Fees: Options selected in Media Options determine how these post.

  • Net vs Gross: If “Media Sales Less COGS” is enabled, revenue posts net of supplier costs.

Why It Matters

Without proper accounting setup, media activity will not flow correctly into the general ledger. Ensuring WIP, revenue, and cost accounts are properly configured guarantees accurate reporting and profitability analysis.