Published on Jan 30,2018
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What is Consolidated Billing?

To understand consolidated billing better, let us take an example. Suppose we have an account with multiple Amazon accounts attached to it, and the organization using it is going to pay for it. We create one account as payee/master account and the other account as child account. Here, the master account can see all the cost and payment information of the child account. The master account is also responsible for payment of all child accounts.

Why is this helpful?

If you have a master account and 3 child accounts, and if the master accounts incur a cost of $30; wherein child account 1 incurs $20, child account 2 incurs $100, child account 3 incurs $1500, the total cost here would be $1650 and the user accessing the master account would be able to see on what the money is spent on.

The added advantages are:

  • We all know that S3 charges in the pay-as-you-go model, but here the more storage you have the less you will be charged. In this case, if all the accounts are a part of the consolidated billing, it will charge less.
  • Second advantage is the reserved instance procurement. In a case of 1 master account and 2 child accounts,  if the reserve instance for all the accounts is running at different time frames, then the child accounts will get the rate that applies to the master account.

Basically, Consolidated Billing helps the user optimize the cost and centralize the payment system.

Example:

Taking a scenario where the total payment done by the master account is $636.64 which is a consolidated cost of all child accounts also.

AWS Credits – Suppose there are 1 master account and 4 child accounts. If one of the accounts gets a credit of $100, the $100 will be spread across accounts according to usage. If one of the accounts has already passed the free usage limit and the user adds the other account to master account, we would not get the advantage of the free usage tier. In this case, it’s important to raise a support case and check eligibility.

 Got a question for us? Mention them in the comments section and we will get back to you.

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edureka
Published on Jan 30,2018

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