1 Standard Agency Job, Pre-Bills with MatchPay (ID.01/09)

2 Current Process – Key Components  Standard agency job with Match Pay  ID Media mostly pre-bills and will only pay the vendor after payment has been received from the client  Performs final reconciliation  Commissions are recognized when billed

3 Proposed Future Process – Key Components  Create standard agency job  Create Estimate and Purchase Order  Process Vendor Invoice  Create Pre-Bill/Estimate Bill (performed by SSC)  Execute manual matchpay (ZFMPAY) to release vendor payments  Perform final reconciliation and close the job  Recognize Revenue as per revenue method

4 Proposed Future Process – Key Components Vantage Term Agency Term Definition Standard Billable Job A billable job with only one or more participating segment Standard Single-segment A billable job with a single segment, i.e. one line of business within one sales office Office Locations (Plants) New York Line of Business (LoB) Advertising

5 Overview of Billable Jobs – Standard Process Flow Create Estimate Change estimate status to INTA Note : INTA =Internally Approved – by agency EXTA =Externally Approved – by client Print estimate and send to client Make changes to estimate or reject,if necessary Client accepts? Change estimate status to EXTA Yes No Job is created Job budget is created. Production and billing can begin. This auto-releases job and prompts user to auto-create purchase reqs for hard cost materials

6 Job Creation and Maintenance Vantage Business Process Performed in Vantage Outside of Vantage The role of Shared Services as depicted in these process flows will vary by agency (i.e. which boxes are in the which swim lane). It is between each agency and Shared Services to make this determination. Swim lanes presented here are not necessarily representative of every agencies’ future state.

7 What is Matchpay IPG custom solution which prevents billable vendor invoices from being paid before client pays the agency.

8 Matchpay Basic Functionality Matchpay program places an automatic “Matchpay block” on (P.O. and Non-P.O.) production vendor invoices. Vendor invoices are not available to be paid by normal Accounts Payable processing until the Matchpay block is removed.

9 Matchpay Basic Functionality

10 Matchpay Settings Matchpay is an agency specific solution which is “set-up” at the company code level.

11 Two Existing “Matchpay” Profiles Manual Matchpay Process  Advantage: more control Automated/Exception Based Matchpay Process  Advantage: efficient processing of large invoice volume

12 Manual Matchpay Profile What’s Included  All Vendor Invoices (P.O. and Non-P.O.) with at least one billable job automatically receive a Matchpay block during invoice creation.  The block prevents the invoice from being paid.

13 Manual Matchpay Profile When Matchpay program is processed at the agency, the program will “propose” the invoices which are due to be released from “MP Block” (Based on calculation rule.)  IMPORTANT Program will not remove block, only propose it. “MP Block Release” has to be confirmed by user.

14 Manual Matchpay Profile Invoice(s) “proposed” to have matchpay block removed, are selected based on invoice due date and calculation rule.  Due date = document date (vendor invoice date) + payment terms.

15 Manual Matchpay Profile Calculation rule: vendor invoice matchpay block removal is suggested on invoice as long as the vendor invoice to be paid correspond to the same received client billing by job/or master job.

16 Manual Matchpay Special Processing Write-offs  Full Invoice Write-off – requires manual release: Write-off column is used as reference (no auto- select)  Partial Invoice Write-off – remaining invoice balance amount remains part of matchpay block processing. (no auto-select)  Example: if $40 of a $100 charge is written off, the system will only require $60 of cash from the client in order to release the $100 vendor invoice.

17 Manual Matchpay Special Processing Invoice Cost Transfers  Partial and full invoice cost transfers from one job to another remain part of matchpay block processing.  If invoice cost is completely transferred from job A to job B, the block will be on Job B and reflected in the matchpay block report.

18 Manual Matchpay Alternative Profile Options Manual Matchpay Option 2  Create Matchpay on only single billable jobs  Matchpay Processing at Job Level  If insufficient funds skip invoice and remove block on next invoice  Auto-proposal on partial transfers/full write-off

19 Manual Matchpay Agency Alternative Profile Options 19 Manual Matchpay Option 3  Create Matchpay on only invoices with at least one billable job  Matchpay Processing at Job Level  If insufficient funds skip invoice and remove block on next invoice  Auto-proposal on partial transfers/full write-off

20 Manual Matchpay Agency Work Instructions

21 Final Bill & Reconciliation Select the checkbox for Final Bill in the Job Summary section to create a live Final invoice for Progressive/ Reconciliation Billing. The system should automatically set the job status to STBI, Stop Billing.

22 Persuasive Evidence and Calculation Batches – Batch Job Schedule Revenue Recognition Batch ProcessFrequency Persuasive Evidence batches RR Calculation batches Every 15 minutes until work day 1. Run each night and at month end closing days -1, 1.

23 Persuasive Evidence and Calculation Batches – Month End - Day -1 Adjustments to WIP, including the Gross Revenue batch job Changes in persuasive evidence requirements and fulfillment, including client POs and externally approved estimates Setting STRR (stop revenue recognition) status

24 Persuasive Evidence and Calculation Batches – Month End - Day 1 Changes to the RA key Changes to contract setting details, i.e. straight-line dates, completion percentages, etc. Cash Collectibility