Campaign 'Make-Good' Provision
Recognizing a liability to provide free future ad impressions when a current campaign fails to meet contractual performance goals (e.g., viewability or click-through rates).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Advertising Revenue (Deferred Component) | Revenue (-) | 5,000.00 | - |
| Contract Liability - Make-Goods | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
If an advertiser pays for 1 million 'viewable' impressions but the technology only tracks 800k as viewable, the AdTech firm owes a 'make-good.' Revenue for the unfulfilled portion is deferred (removed from the P&L) and moved to a liability account until the extra impressions are served in a subsequent period.
Practitioner & Systems Framework
💻 ERP Architecture
The Ad Server tracks 'pacing.' If a campaign is under-pacing at month-end, the revenue recognition script must automatically defer the unearned portion.
⚠️ Audit Flags
The 'Viewability' definition. Different contracts use different standards (e.g., MRC vs. custom). Auditors verify that the revenue deferral matches the specific contract terms.
📄 Required Documentation
Campaign performance reports, viewability logs, and the original Insertion Order (IO) specifying performance guarantees.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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