Average Monthly Billing

Definition

Average Monthly Billing (AMB) is a payment plan calculation mechanism primarily utilized in North American utility markets that constantly reassesses and gently updates the monthly required installment threshold based on a continuously rolling mathematical trailing average of actual consumption.

Business Purpose and Architecture

AMB strictly prevents massive true-up shock at the end of a 12-month budget period by dynamically adjusting small amounts monthly. Architecturally, when AMB rules are applied to a Contract, every subsequent real Invoicing execution mathematically queries the past 11 historical billed months. It factors the immediate actual monthly bill total and dynamically divides them to establish the new forward amount. If the customer ran the A/C heavily in July, their August required AMB payment seamlessly rises to absorb the delta.