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Copy file name to clipboardExpand all lines: articles/cost-management-billing/costs/allocate-costs.md
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@@ -3,7 +3,7 @@ title: Allocate Azure costs
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description: This article explains how create cost allocation rules to distribute costs of subscriptions, resource groups, or tags to others.
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author: bandersmsft
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ms.author: banders
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ms.date: 01/23/2024
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ms.date: 08/01/2024
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ms.topic: how-to
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ms.service: cost-management-billing
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ms.subservice: cost-management
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Large enterprises often centrally manage Azure services or resources. However, different internal departments or business units use them. Typically, the centrally managing team wants to reallocate the cost of the shared services back out to the internal departments or organizational business units who are actively using the services. This article helps you understand and use cost allocation in Cost Management.
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With cost allocation, you can reassign or distribute the costs of shared services. Costs from subscriptions, resource groups, or tags get assigned to other subscriptions, resource groups or tags in your organization. Cost allocation shifts costs of the shared services to another subscription, resource groups, or tags owned by the consuming internal departments or business units. In other words, cost allocation helps to manage and show _cost accountability_ from one place to another.
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With cost allocation, you can reassign or distribute the costs of shared services. Costs from subscriptions, resource groups, or tags get assigned to other subscriptions, resource groups, or tags in your organization. Cost allocation shifts costs of the shared services to another subscription, resource groups, or tags owned by the consuming internal departments or business units. In other words, cost allocation helps to manage and show _cost accountability_ from one place to another.
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Cost allocation doesn't support purchases, including reservations and savings plans.
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## Rules processing
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Rules are processed in the order in which they're created and can take up to 24 hours to take effect.
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Rules are processed in the order in which they get created and can take up to 24 hours to take effect.
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Let's look at an example. Assume that an active rule, *Rule CA-1*, allocates costs from subscription A (the source) to subscription B (the target).
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Later, a new rule, *Rule CA-2* gets created. Its source is subscription A and its target is subscription C. So, the rule has no effect because costs for subscription A are zero. The costs are zero because *Rule CA-1* is active. It already allocated all the costs from subscription A to subscription B.
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If the target subscription incurs any charges during the current month, the cost allocation rule continues to allocate costs to it until the subscription is deleted. In the following month, the rule has no effect because the target subscription no longer exists.
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## Verify the cost allocation rule
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When the cost allocation rule is active, costs from the selected sources distribute to the specified allocation targets. Use the following information to verify proper cost allocation to targets.
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However, cost allocation data results might be empty if you're using an unsupported API or if you don't have any cost allocation rules.
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If you have cost allocation rule(s) enabled, the unit price for the reserved instance (RI) purchase will show up as 0 in the usage details file. To work around this limitation, you could use the pricesheet data.
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If you have cost allocation rules enabled, the unit price for the reserved instance (RI) purchase shows up as 0 in the usage details file. To work around this limitation, you could use the price sheet data.
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Cost allocation to a target doesn't happen if that target doesn't have any costs associated with it.
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