How Does Commitment Discount Attribution Work
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This touches on a concept called "Attribution" in Archera, which handles which RIs & SPs are applied to which resources within your account, along with associated costs & savings.
AWS has a default attribution strategy where all commitments are applied against all resources based on what gets the highest discount, and for resources that get the same discount, attribution is handled in an arbitrary manner.
This behavior applies both to:
Commitments purchased natively through AWS Cost Explorer
Commitments purchased through Archera (even if they were purchased for a particular segment)
Archera, by default, employs the AWS default attribution strategy. We do this because the default attribution strategy aligns with what will be shown on your AWS bill and usage report.
Using a different attribution strategy could lead to discrepancies between AWS and Archera in terms of the precise cost of each resource.
For customers seeking an alternative chargeback model distinct from the AWS default — featuring a custom attribution strategy — we offer the capability to support custom attributions for any Reserved Instance (RI) or Savings Plan (SP) through our Custom Reporting Functionality.
This feature is employed by our enterprise customers for:
In-depth analysis of COGS
Margin analysis
Business Unit (BU) showback/chargeback
Other customized functionalities
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