What is Amazon Billing Conductor?
Amazon Billing Conductor is a custom billing service for Amazon Channel Partners (Partners) and organizations that have chargeback requirements. For Partners, chargebacks are a prerequisite to getting paid by their customers. For direct customers, showback or, chargeback activities ensure that the business allocates the costs of a specific team, business unit, subsidiary or affiliate company, to the correct internal budget or profit and loss (P&L) statement.
To achieve these activities, Billing Conductor enables users to create a second version of their costs to share with their customers or account owners. The second version of cloud cost data comes from your Billing Conductor configuration (pricing plans, pricing rules, and custom line items).
This data is called pro forma cost data, which represents costs for accounts in billing groups. These Billing Conductor resources can include a subset of accounts in an Amazon Organizations (standard billing group) when using Billing Conductor as a standalone service, or an entire Amazon Organizations (billing transfer billing group) when using Billing Conductor with billing transfer.
Pro forma data exists in a separate domain (pro forma) from your billable cost data (standard billable). While billable cost data uses Amazon-determined pricing, pro forma data is accessible through billing views.
The primary billing view for accounts or Amazon Organizations in billing groups shows only pro forma data. The account that configures the Billing Conductor pricing resources gains access to the billing view that shows the pro forma data displayed to accounts or Amazon Organizations in billing groups.
Note
Customers will observe cost differences between billable costs (matching the Amazon invoice) and pro forma costs (matching the Billing Conductor configuration) throughout the month. However, usage values will match at the end of each month, once the Amazon invoice is issued.
Defining pro forma costs enables customers to model their costs uniformly to match one of the following use cases:
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Customer agreements, which can be a Partner use case negotiated outside of Amazon
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Internal accounting practices, often an organization-specific use case
Billing Conductor configurations don't affect customers’ existing invoices from Amazon or billing configurations (for example, sharing of credits or commitment-based discounts like Reserved Instances or Savings Plans).
You can analyze pro forma costs from either a management account of a standalone Amazon Organizations or from a bill transfer account that manages multiple Amazon Organizations bills.
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Analyze margins (the difference between pro forma costs and billable costs for the same set of accounts) within Billing Conductor
Use to analyze cost data using either billing group views or billing transfer views
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Analyze cost data by using
Billing Groupviews orBilling Transferviews on the Bills page -
Create a for each
Billing Groupview andBilling Transferview -
View reservation and Savings Plans coverage and utilization reports that reflect
Billing GroupandBilling Transferviews
Billing Conductor managed accounts and Amazon Organizations can analyze pro forma costs in Amazon Cost Explorer, Cost and Usage Reports, the Billing dashboard, and the billing details page. Managed accounts and Amazon Organizations in billing groups can create budgets to monitor their pro forma spend and receive alerts when they exceed, or are forecasted to exceed, their desired pro forma spending limit.
You can configure billing groups, pricing plans, pricing rules, and custom line items in the
Billing Conductor console
For more information about Amazon Billing Conductor service quotas, see Quotas and restrictions. For more information about billing transfer, see Transfer billing management to external accounts.
Features in Amazon Billing Conductor
You can use the Amazon Billing Conductor features to do the following:
- Group accounts in standard billing groups
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Organize accounts into Billing Conductor billing groups to view aggregated pro forma costs that model your Amazon Organizations structure to reflect your business financial organization.
- Assign Amazon Organizations to billing transfer billing group
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When using billing transfer, you can use Billing Conductor to create billing groups that map one-to-one with an Amazon Organizations so that the entire organization (including the management account) can view the pro forma costs data exclusively.
- Custom pricing
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Set global or specific markups or discounts, and control Free Tier access.
- Charges and credits
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Add one-time or recurring flat or percentage-based charges or credits to billing groups.
- Pro forma analysis
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Analyze costs based on pricing configurations in the Billing console. Accounts and Amazon Organizations in your billing groups can visualize, forecast, and create custom reports of their pro forma costs in Amazon Cost Explorer. Accounts and Amazon Organizations in the billing groups can view Reservation and Savings Plans coverage and utilization reports that reflects their pro forma costs. When using Billing Conductor as a standalone service, you designate a primary account for each billing group. This primary account has a cross-account view of all costs accrued by accounts in the billing group, while non-primary accounts see only their own costs. For Billing Conductor users who opt in to billing transfer, the primary account defaults to the management account of the Amazon Organizations that's transferring its bills (bill source account).
- Reporting
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Configure Cost and Usage Reports for each billing group.
- Rate analysis
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Compare the applied rates to actual Amazon rates with the billing group margin report.
- Budget
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Accounts and Amazon Organizations in billing groups can create budgets to monitor their pro forma spend and be alerted when they exceed, or they are forecasted to exceed, their desired pro forma spending limit.
Pricing for Amazon Billing Conductor
For more information about pricing, see Amazon Billing Conductor Pricing
Related services
- Amazon Billing
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The Amazon Billing is the portal for all Amazon customers, from students and startup companies to large enterprises. You can use the console to see the resources that are running in your Amazon accounts, manage billing preferences, and access billing artifacts that are needed to make payments to Amazon. The Amazon Billing console also provides a high-level explanation of the spending for your account, and serves as the entry point for enrolling in products in the Amazon Cost Management products.
For more information, see the Amazon Billing User Guide.
- Amazon Cost Explorer
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You can use the Cost Explorer interface to visualize, understand, and manage your Amazon costs and usage over time. Get started quickly by creating custom reports that analyze cost and usage data. Analyze your data at a high level (for example, total costs and usage across all accounts), or dive deeper into your cost and usage data to identify trends, pinpoint cost drivers, and detect anomalies.
For more information, see the following topics:
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Performing ad hoc analysis on pro forma costs in Amazon Cost Explorer
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Analyzing your costs with Amazon Cost Explorer in the Amazon Cost Management User Guide
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- Amazon Cost and Usage Reports
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The Amazon Cost and Usage Reports (Amazon CUR) contain the most comprehensive set of cost and usage data available. You can use Cost and Usage Reports to publish your Amazon billing reports to an Amazon Simple Storage Service (Amazon S3) bucket that you own. You can receive reports that break down your costs by the hour or day, by product or product resource, or by tags that you define yourself.
Amazon updates the report in your bucket once a day in comma-separated values (CSV) or Apache Parquet format. You can view the reports using spreadsheet software such as Microsoft Excel or Apache OpenOffice Calc. You can also access them from an application using the Amazon S3 or Amazon Athena APIs.
Amazon Cost and Usage Reports track your Amazon usage and provide estimated charges associated with your account. Each report contains line items for each unique combination of Amazon products, usage type, and operation that you use in your Amazon account.
- Amazon Identity and Access Management (IAM)
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The Amazon Billing Conductor service is integrated with Amazon Identity and Access Management (IAM). You can use IAM with Amazon Billing Conductor to ensure that other people who work in your account have only as much access as they need to get their job done.
You also use IAM to control access to all of your Amazon resources. This includes but is not limited to your billing information. It's important that you familiarize yourself with the basic concepts and best practices of IAM before you get too far along with setting up the structure of your Amazon account.
For more information about how to work with IAM, see What Is IAM? and Security Best Practices in IAM in the IAM User Guide.
- Amazon Organizations (Consolidated billing)
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Amazon products and services can accommodate every size of company, from small startups to enterprises. If your company is large or likely to grow, you might want to set up multiple Amazon accounts that reflect your company's structure. For example, you can have one account for the entire company and accounts for each employee, or an account for the entire company with IAM users for each employee. You can have an account for the entire company, accounts for each department or team within the company, and accounts for each employee.
If you create multiple accounts, you can use the consolidated billing feature of Amazon Organizations to combine all your member accounts under one management account and receive a single bill. For more information, see Consolidated billing for Organizations in the Amazon Billing User Guide.
- Billing transfer
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Billing transfer decouples billing and financial management from security and governance management. This enables a single Amazon Organizations to get centralized access to costs data and Amazon invoices across multiple organizations.
To centralize billing while maintaining security management autonomy, billing transfer allows a management account to designate an external management account to manage and pay for its consolidated bill. To set up billing transfer, an external account (bill transfer account) sends a billing transfer invitation to a management account (bill source account). After the invitation is accepted, the external account becomes the bill transfer account and manages payment for the bill source account's consolidated bill, starting on the date specified in the invitation.
For more information, see Transfer billing management to external accounts.
- Billing views
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A billing view helps you manage and control access to cost management data within your Amazon environment. With billing views, cost management data is represented as an Amazon resource. Through resource-based policies, you can configure what data is accessible to an account when using Amazon Billing and Cost Management tools.
Each billing view is identified by a unique Amazon Resource Name (ARN), which you can reference in identity-based policies to perform specific IAM actions on the cost management data contained in that billing view.
For more information, see Controlling cost management data access with Billing View.