How is the pricing benefit of a Reserved Instance applied across an organization's consolidated bill?

Last updated: 2021-01-26

How is the pricing benefit of a Reserved Instance (RI) applied in an organization's consolidated billing family?

Resolution

RI discounts apply to accounts in an organization's consolidated billing family depending upon whether RI sharing is turned on or off for the accounts. By default, RI sharing for all accounts in an organization is turned on. The management account of an organization can change this setting by turning off RI sharing for an account.

The capacity reservation for an RI applies only to the account the RI was purchased on, no matter whether RI sharing is turned on or off.

If RI sharing is turned on for an account in an organization, then:

  • At least one account in the organization's consolidated billing family must be running an instance that matches the specifications of the RI for the discount to apply to the management account's bill.
  • The discount for any RIs purchased on that account is applied to the combined usage for that instance type on the management account's bill.
  • The RI discount applies to the total usage of the instance type for the full duration of the RI. The RI discount applies even if the purchasing member account is closed.
  • The discount on the RIs purchased on a member account doesn't apply to the consolidated bill if the member account leaves the organization or is removed from the organization by the management account.
  • The account that originally purchased the RI receives the discount first. If the purchasing account has no instances that match the terms of the RI, then the discount for the RI is assigned to any matching usage on another account in the organization.

If RI sharing is turned off for an account in an organization, then:

  • RI discounts apply only to the account that purchased the RIs.
  • RI discounts from other accounts in the organization's consolidated billing family don't apply.
  • The charges accrued on that account are still added to the organization's consolidated bill and are paid by the management account.

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