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Amazon CLF-C02: Which AWS Service Consolidates Payments Across Multiple AWS Accounts?

Learn which AWS service consolidates payments for multiple AWS accounts. Understand how AWS Organizations simplifies billing and cost management for enterprises.

Question

Which AWS service or tool can be used to consolidate a company’s payments with multiple AWS accounts?

A. AWS Cost and Usage Report
B. AWS Organizations
C. Cost Explorer
D. AWS Budgets

Answer

B. AWS Organizations

Explanation

AWS Organizations is an account management service that enables you to consolidate multiple AWS accounts into an organization that you create and centrally manage. AWS Organizations includes consolidated billing and account management features that allow you to better meet the budgetary, security, and compliance needs of your business.

AWS Organizations is a management service that enables enterprises to centrally manage multiple AWS accounts. One of its key features is Consolidated Billing, which allows organizations to combine billing and payment for multiple accounts into a single invoice. This feature is particularly useful for businesses that operate multiple AWS accounts, as it simplifies cost tracking and payment processes.

Key Benefits of Using AWS Organizations for Consolidated Billing

  • Single Invoice: All charges from member accounts are consolidated into one bill, managed by a central management account.
  • Cost Tracking: Provides detailed cost and usage data across all linked accounts, enabling better financial oversight.
  • Volume Discounts: Combines usage across all accounts to qualify for volume pricing discounts, Reserved Instance discounts, and Savings Plans, reducing overall costs.
  • No Additional Cost: Consolidated billing is included at no extra charge.

Why Other Options Are Incorrect

A. AWS Cost and Usage Report: This tool provides detailed reports on usage and costs but does not consolidate billing.

C. Cost Explorer: This helps analyze costs and usage trends but does not handle payment consolidation.

D. AWS Budgets: This service sets spending thresholds and alerts but does not manage or consolidate payments.

AWS Organizations is the only service specifically designed to consolidate billing across multiple accounts, making it the ideal choice for this scenario.

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