When customers agree on a minimum monthly fee (monthly commitment), the general philosophy is that for the minimum monthly fee related to month M:
- The minimum monthly fee is part of the invoice issued on the last day of the previous month (M-1) and due 30 days later, hence at the end of the month M to which it applies;
- If the actual consumption of month M is above the minimum fees, the invoice of month M will show the total fees related to month M actual consumption minus the minimum fee that was already charged a month before, hence the net fees above the monthly minimum;
- If the actual consumption of month M is below the minimum fees, the invoice of month M will not show any fees above the monthly minimum. Only the minimum fees already charged in month M-1 will apply.
See example below, based on
- monthly minimum of 100
- consumption of 150 in month M (above monthly minimum)
- consumption of 80 in month M+1 (below monthly minimum)
|
Month of invoice |
Services consumed in month M |
Services consumed in month M+1 |
Services consumed in month M+2 |
Total amount invoiced |
|
Invoice month M-1 |
100 monthly minimum month M |
|
|
100 |
|
Invoice month M |
+ 150 consumed in month M |
100 monthly minimum month M+1 |
|
150 |
|
Invoice month M+1 |
|
+ 80 consumed in M+1 |
100 monthly minimum month M+2 |
100 |
|
TOTAL |
150 |
100 |
TBD |
350 for M to M+2 |