Utility companies normally bill for their services at the end of a supply period - in an annual consumption billing, for example. Therefore, they charge budget billing amounts during the supply period instead of the actual amount owed, in order to remain solvent. You specify the budget billing amounts and the dates they are due in the budget billing plan. The budget billing plan is the basis for charging budget billing amounts.

With budget billing plans, you manage the budget billing requests in a billing period in between two periodic bills.

You can use several budget billing procedures. Each of these have different ways of determining budget billing dates and amounts, managing budget billing data, and posting procedures: