Glossary of Terms

P&L: Profit & Loss Statement; a summary of all revenues, costs & expenses showing the Agency’s ability to generate profit

Commitment: a consolidated P&L sent to Publicis Groupe at the beginning of every year, serves as the target for the year

RF: Rolling Forecast; periodic updates to Commitment that reflect changes in our business environment

PCR (or PC RATIO): Personnel Cost Ratio; the ratio of Salaries & Wages to Net Revenue; directly impacts Agency profitability

ACCRUAL: Financial entries that represent earned revenues and incurred expenses and directly impact Agency profitability

% COMPLETION: At a point in time, progress made towards completing a project. If a project were to be cancelled today, how much could we realistically bill the client?

BURN RATE: Shows hourly expenditure by resource at a point in time against an estimated amount of a project

FIXED FEE: Client agrees to pay the Agency a set amount for predefined deliverables, irrespective of actual resources needed to deliver

RETAINER: A contractual agreement where client agrees to pay an amount to the agency in return for a set of deliverables

HFM: Hyperion Financial Management; the tool used to submit all financial information to Head Office

SAP: Systems, Applications, and Products, the software used by the Agency to manage financial information internally

SAP JOB #/CODE: Used to track all revenues & expenses related to every project

DOCKET: Legacy job tracking number, linked to an SAP Job number and tracked in HourGlass