I often just account for this within another fee, such as the creative fee or day rate. In some cases, account for it within a digital capture fee.
At the risk of digressing or expanding too much, I am curious about what commercial photographers feel about more versus fewer line items. Obviously, photographers need to be aware of all of their production expenses, but do all clients need to see the breakdown, and does breaking down the fees lead to more opportunities for client confusion or nitpicking of expenses? On the other hand, does a breakdown of fees help with less experienced clients, giving them a chance to see what actually goes into producing the photos, since they may not actually be at the shoot and seldom see all of the preparations for the shoot and the digital processing.
Another thought regarding equipment, if you factor equipment into your day rate or creative fee, do you bring all of this equipment to every job, and, if not, do you vary your creative fee or day rate to account for this?
Dave, with my little experience with ad firms, and my fiancee's more experience, a good art producer is going to understand there are many costs that go into a production. At the very least there will be: photographer's day rate, digital capture, licensing, prop stylist's day rate, prop expenses, studio and/or location fess, rental equipment, assistants, etc.
Add in models and now you have a half dozen more line items, at least.
If the art director is experienced and she does not see all of these cost/expenses accounted for, she will probably question the photographer's ability to produce the images her client needs, which means you will be looked over. So for ad firms, it is best to include all of these line items.
Additionally, it gives the client an idea of where all of the money is going, not just to the photographer.
Now for the inexperience art producer who does not understand what goes into a production, this may not be the case. He may just look at the grand total and think he is being ripped off or that there is something wrong with the estimate. However, those producers are often looking for the lowest price and probably not the best client to work for.