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

The way that Reserved Instance discounts apply to accounts in an organization's consolidated billing family depends on whether Reserved Instance sharing is turned on or off for the account. By default, Reserved Instance sharing for all accounts in an organization is turned on. You can change this setting by Turning Off Reserved Instance Sharing for an account.

The capacity reservation for a Reserved Instance applies only to the account the Reserved Instance was purchased on, regardless of whether Reserved Instance sharing is turned on or off.

If Reserved Instance sharing is turned on for an account in an organization:

  • The discount for any Reserved Instances purchased on that account is applied to the combined usage for that instance type on the master payer account's bill.
  • The account that originally purchased the Reserved Instance receives the discount first. If the purchasing account doesn't have any instances that match the terms of the Reserved Instance, the discount for the Reserved Instance is assigned to any matching usage on another account in the organization.
  • At least one account in the organization's consolidated billing family must be running an instance that matches the specifications of the Reserved Instance for the discount to apply to the master payer account's bill.

If Reserved Instance sharing is turned off for an account in an organization:

  • Reserved Instance discounts apply only to the account that purchased the Reserved Instance.
  • Reserved Instance 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 master payer account. 

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Published: 2016-04-08

Updated: 2018-09-17