Budget billing Vs Equalized billing/Average monthly billing

[Former Member]

Hi folks,

What is the difference between budget billing and equalized billing? Please can someone explain with an example.

Thanks!

Rv

[Former Member]

HI,

Please see below to clarify your doubts:

Budget billing

An average amount is determined manually or via simulation that the customer pays for a period of 12 months. Actual billing is performed monthly and the results are printed on the bill. In addition, the difference between the amount of the actual consumption and the fixed average amount is calculated, updated monthly, and also printed on the bill. In the last month of the meter reading period, the actual amount and the accumulated difference are billed.

Average monthly billing/equalized billing

The customer is billed an average monthly amount based on the billings of the last 12 months. Actual billing is performed monthly and the results are printed on the bill. The amount due for later months is calculated using the average of the previous monthly bills, the current bill, and the accumulated difference. This difference is updated monthly and is likewise shown on the bill.

Regards,

S

[Former Member]

Thanks for the post mate but an example would be very helpful.

Budget billing:

As I understand, budget billing payment amount stays the same throughout the year unless based on periodic review by the Utility it is adjusted up or down.

Say last year bill was $3000 for the year. This year the customer decides to get on the budget billing plan and the utility estimates $250 as the budget billing amount to be paid every month for the billing period (12 months).

How is Average monthly/Equalized billing different than this?

Thanks!

[Former Member]

Hi,

The basic difference between AMB(Equalized billing) vs BBP is in case of AMB the review happens each time after each billing period for coming month and the due amount is calculated based on

1. Average of the previous monthly bills

2. The current bill

3. The accumulated difference.

Therefore the deduced amount may vary each time i.e. considering ur example it may vary 240 - 260(based on config).

So the bottomline is, in this case the amount is not fixed but obviously within a range for greater predictability.

Regards,

S

[raviahuja]

Hi,

To add to the nice explanation already given by my friend, check the below link. It explains Equalised Budget Billing with example.

[http://help.sap.com/erp2005_ehp_05/helpdata/en/36/e5d4872460457ca5c31c7361024f1f/content.htm]

[http://help.sap.com/erp2005_ehp_04/helpdata/en/f3/a029a526f34313a13782093b41ce74/content.htm]

[http://help.sap.com/erp2005_ehp_04/helpdata/en/c0/ef2e9114974cb1a1c91c63bd29272a/content.htm]

The logic for extrapolating the new amount for each installment is very complex in case of Equalised BB and depends on last consumption, consumption during the same period last year and many other factors. The reassessment normally happens whenever periodic billing happens.

Thanks.

Ravi