# COST03-BP05 - Configure billing and cost management tools

Best practice: COST03-BP05
Pillar: Cost Optimization
Source: https://wellarchitected.cloudvisor.eu/docs/cost-optimization/cost03-bp05.html

## Implementation guidance

Configure the AWS billing and cost management tools so that the cost and usage
data captured in your detailed information sources is visible, actionable, and
proactively monitored. With the right tools configured, teams can analyze
spending, set budgets, and detect anomalies without building bespoke tooling.

### Configure the core tools

**AWS Cost Explorer**: Turn on Cost Explorer to provide interactive cost
analysis and visualization with pre-built and custom reports. Use it to
understand spending patterns and trends across the organization.

**AWS Budgets**: Create budgets with automated alerts and budget actions so cost
or usage crossing a threshold proactively notifies owners (and can trigger
automated responses).

**AWS Cost Anomaly Detection**: Enable anomaly detection to automatically
surface unusual spend using machine learning, giving early warning of cost
issues before they accumulate.

### Make the tools effective

**Scope to the organization**: Configure the tools at the management account
level (with AWS Organizations consolidated billing) so coverage spans all member
accounts from a single place.

**Tie alerts to owners**: Route budget and anomaly alerts to the teams that own
the spend, using the cost attribution categories and organization metrics
defined in the other COST03 best practices.

**Review and tune**: Regularly review thresholds and reports to keep alerts
meaningful and reduce noise.

## AWS Services to Consider

<div class="aws-service">
  <div class="aws-service-content">
    <h4>AWS Cost Explorer</h4>
    <p>Interactive cost analysis and visualization with pre-built and custom reports.</p>
  </div>
</div>

<div class="aws-service">
  <div class="aws-service-content">
    <h4>AWS Budgets</h4>
    <p>Custom budgets with automated alerts and budget actions for proactive cost control.</p>
  </div>
</div>

<div class="aws-service">
  <div class="aws-service-content">
    <h4>AWS Cost Anomaly Detection</h4>
    <p>Machine-learning detection of unusual spend for early warning of cost issues.</p>
  </div>
</div>

## Related Resources

<div class="related-resources">
  <ul>
    <li><a href="https://docs.aws.amazon.com/wellarchitected/latest/framework/cost_monitor_usage_tools.html">AWS Well-Architected — COST03-BP05 Configure billing and cost management tools</a></li>
    <li><a href="https://docs.aws.amazon.com/wellarchitected/latest/framework/cost-03.html">COST03: How do you monitor your cost and usage?</a></li>
  </ul>
</div>