Budget Billing Plan
Definition
A Budget Billing Plan generates a smoothed, predicted payment schedule for a utility customer. Instead of paying highly variable monthly amounts based exactly on seasonal consumption, the consumer pays a levelized flat amount over a cycle (often 12 months) before undergoing a true-up.
Business Purpose and Architecture
The business purpose is to provide payment stability and predictability for customers, reducing default rates during high-consumption seasons (like winter heating). Architecturally, this plan is completely integrated with Periodic Billing and Invoicing. During a move-in or a periodic run, mathematical forecasts are calculated using base master data to physically generate exactly how much the levelized payment plan amounts must be set for in the upcoming cycle within the FI-CA module.