How to Record Private Marketplace (PMP) Setup and Access Fees
Recording revenue for the creation and management of exclusive 'Private Marketplaces' where premium publishers sell inventory to a selected group of advertisers.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable - Agency/Advertiser | Asset (+) | 5,000.00 | - |
| Revenue - PMP Access & Management Fees | Revenue (+) | - | 5,000.00 |
💡 Accountant's Note
PMPs (Private Marketplaces) are 'invite-only' auctions. AdTech firms often charge 'Setup Fees' or 'Management Fees' to curate these high-quality environments. Under ASC 606, this is service revenue. If the setup is a separate performance obligation (e.g., the advertiser can use the PMP for a year), the fee might be recognized upfront or over the life of the PMP access, depending on the contract terms.
Practitioner & Systems Framework
💻 ERP Architecture
Map this to a 'Technology Services' revenue bucket to distinguish it from 'Media Spend.' Management fees are usually flat-fee or a % of the 'Clearing Price' in the PMP.
⚠️ Audit Flags
Revenue recognition timing. If a 'Setup Fee' is charged but no ads are ever served through the PMP, auditors will question if the 'Transfer of Control' of the service actually occurred.
📄 Required Documentation
PMP 'Deal ID' setup confirmation, Master Service Agreement (MSA) fee schedule, and the 'Deal Health' report showing active bid requests.
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