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Focus Billing overview on Billing
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articles/cost-management-billing/cost-management-billing-overview.md

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---
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title: Overview of Cost Management + Billing
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title: Overview of Billing
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titleSuffix: Microsoft Cost Management
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description: You use Cost Management + Billing features to conduct billing administrative tasks and manage billing access to costs. You also use the features to monitor and control Azure spending and to optimize Azure resource use.
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description: You use Billing features to conduct manage billing accounts, invoices, and purchased products. You also use the features to monitor and control Azure spending and to optimize Azure resource use.
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author: bandersmsft
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ms.author: banders
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ms.reviewer: micfaln
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ms.custom: engagement-fy2
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---
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# What is Microsoft Cost Management and Billing?
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Microsoft Cost Management is a suite of tools that help organizations monitor, allocate, and optimize the cost of their Microsoft Cloud workloads. Cost Management is available to anyone with access to a billing or resource management scope. The availability includes anyone from the cloud finance team with access to the billing account. And, to DevOps teams managing resources in subscriptions and resource groups.
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# What is Microsoft Billing?
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Billing is where you can manage your accounts, invoices, and payments. Billing is available to anyone with access to a billing account or other billing scope, like billing profiles and invoice sections. The cloud finance team and organizational leaders are typically included.
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Together, Cost Management and Billing are your gateway to the Microsoft Commerce system that's available to everyone throughout the journey. From initial sign-up and billing account management, to the purchase and management of Microsoft and third-party Marketplace offers, to financial operations (FinOps) tools.
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A few examples of what you can do in Cost Management and Billing include:
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A few examples of what you can do in Billing include:
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- Report on and analyze costs in the Azure portal, Microsoft 365 admin center, or externally by exporting data.
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- Monitor costs proactively with budget, anomaly, and scheduled alerts.
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- Split shared costs with cost allocation rules.
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- Create and organize subscriptions to customize invoices.
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- Configure payment options and pay invoices.
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- Manage your billing information, such as legal entity, tax information, and agreements.
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- Report on and analyze costs in the Azure portal, Microsoft 365 admin center, or externally by exporting data.
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- Monitor costs proactively with budget and scheduled alerts.
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## How charges are processed
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To understand how Cost Management and Billing works, you should first understand the Commerce system. At its core, Microsoft Commerce is a data pipeline that underpins all Microsoft commercial transactions, whether consumer or commercial. There are many inputs and connections to the pipeline. It includes the sign-up and Marketplace purchase experiences. However, we'll focus on the pieces that make up your cloud billing account and how charges are processed within the system.
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To understand how Billing works, you should first understand the Commerce system. At its core, Microsoft Commerce is a data pipeline that underpins all Microsoft commercial transactions, whether consumer or commercial. There are many inputs and connections to the pipeline. It includes the sign-up and Marketplace purchase experiences. However, we'll focus on the pieces that make up your cloud billing account and how charges are processed within the system.
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:::image type="content" source="./media/commerce-pipeline.svg" alt-text="Diagram showing the Commerce data pipeline." border="false" lightbox="./media/commerce-pipeline.svg":::
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Cost Management and Billing offer many different types of emails and alerts to keep you informed and help you proactively manage your account and incurred costs.
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- [**Budget alerts**](./costs/tutorial-acm-create-budgets.md) notify recipients when cost exceeds a predefined cost or forecast amount. Budgets can be visualized in cost analysis and are available on every scope supported by Cost Management. Subscription and resource group budgets can also be configured to notify an action group to take automated actions to reduce or even stop further charges.
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- [**Anomaly alerts**](./understand/analyze-unexpected-charges.md) notify recipients when an unexpected change in daily usage has been detected. It can be a spike or a dip. Anomaly detection is only available for subscriptions and can be viewed within the cost analysis smart view. Anomaly alerts can be configured from the cost alerts page.
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- [**Scheduled alerts**](./costs/save-share-views.md#subscribe-to-scheduled-alerts) notify recipients about the latest costs on a daily, weekly, or monthly schedule based on a saved cost view. Alert emails include a visual chart representation of the view and can optionally include a CSV file. Views are configured in cost analysis, but recipients don't require access to cost in order to view the email, chart, or linked CSV.
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- **EA commitment balance alerts** are automatically sent to any notification contacts configured on the EA billing account when the balance is 90% or 100% used.
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- **Invoice alerts** can be configured for MCA billing profiles and Microsoft Online Services Program (MOSP) subscriptions. For details, see [View and download your Azure invoice](./understand/download-azure-invoice.md).
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- There are many [**free services**](https://azure.microsoft.com/pricing/free-services/) available in Azure. Be sure to pay close attention to the constraints. Different services are free indefinitely, for 12 months, or 30 days. Some are free up to a specific amount of usage and some may have dependencies on other services that aren't free.
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- The [**Azure pricing calculator**](https://azure.microsoft.com/pricing/calculator/) is the best place to start when planning a new deployment. You can tweak many aspects of the deployment to understand how you'll be charged for that service and identify which SKUs/options will keep you within your desired price range. For more information about pricing for each of the services you use, see [pricing details](https://azure.microsoft.com/pricing/).
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- [**Azure Advisor cost recommendations**](./costs/tutorial-acm-opt-recommendations.md) should be your first stop when interested in optimizing existing resources. Advisor recommendations are updated daily and are based on your usage patterns. Advisor is available for subscriptions and resource groups. Management group users can also see recommendations but will need to select the desired subscriptions. Billing users can only see recommendations for subscriptions they have resource access to.
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- [**Azure savings plans**](./savings-plan/index.yml) save you money when you have consistent usage of Azure compute resources. A savings plan can significantly reduce your resource costs by up to 65% from pay-as-you-go prices.
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- [**Azure reservations**](https://azure.microsoft.com/reservations/) help you save up to 72% compared to pay-as-you-go rates by pre-committing to specific usage amounts for a set time duration.
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- [**Azure Hybrid Benefit**](https://azure.microsoft.com/pricing/hybrid-benefit/) helps you significantly reduce costs by using on-premises Windows Server and SQL Server licenses or RedHat and SUSE Linux subscriptions on Azure.
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## Next steps
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Now that you're familiar with Cost Management + Billing, the next step is to start using the service.
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Now that you're familiar with Billing, the next step is to start using the service.
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- Start using Cost Management to [analyze costs](./costs/quick-acm-cost-analysis.md).
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- You can also read more about [Cost Management best practices](./costs/cost-mgt-best-practices.md).

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