Video 1.4, creating a budget and billing alert. In this video, we will learn the following what is billing and Cost Management? By should we create an AWS budget, creating an AWS budget, setting up the billing preferences. What is billing and Cost Management, AWS billing and Cost Management is a service that allows you to access, analyze and control the AWS costs and usage. In billing and Cost Management Service. You can also pay the bills.
This is the AWS billing and cost management dashboard. Now, let's learn the details. All these tools help us with the cost management. Now, let's look at each tool. Starting with cost Explorer. This tool helps us in viewing the AWS cost data as graphs.
Budgets, we can use budgets for Tracking, AWS usage and costs. We can also create alerts that will notify us when the AWS usage or cost exceeds the budget. Here, we can set a budget limit reports. Here, we can receive reports that will break down the cost by our sermons by products or product resources or by tags that are defined by us. Next, billing bills. Here you can see the details about the current charges for this month.
Here select date is scroll down menu will appear like this. I created this account in July 2019. So I can select any month from July 2019 and see the bill for that month. Here. You can also download the bill. orders and invoices, orders and invoices will let you know about the past payment trends.
Sections credits. The AWS credits are applied for the bills to help cover costs that are associated with eligible services. Basically, here you can apply coupons to get discount while paying double useful stuff. AWS automatically charges the credit card you provided when you signed up for a new account in AWS charges appear on your credit card bill every month. But if you choose India as your contracted risk country, when you signed up, you might need to approve the charges before your credit card is built by should we create an AWS budget. Although AWS is a free account for 12 months, its services are limited.
When the usage of services exceeds the limits then you will be charged. Okay. Let me tell you an interesting real life example. Consider you forgot to switch off the AC and went on a trip to Paris. It is a 15 day trip and you enjoyed it a lot, then you're back home, you realize that you forgot to turn off the AC. Finally, you ended up getting a huge electricity bill.
What would you do? Is it the mistake of the electricity board? No. Similarly, you need to be very careful by using the AWS account. Since we cannot manually monitor the account, every minute, we will create a budget for the account. I will be creating a cost budget.
So let's dive right into creating an AWS budget for our accountant. Log into the AWS Management Console. On the top here, you can find my billing dashboard selected. On the left hand side in the navigation pane, select budgets. important number of free budgets that you can create per account are two And number of freeter, AWS cost and usage reports are 10. So make sure that you don't create more than two budgets.
So let's create a budget. Here, you can find create a budget selected, you can choose the cost or usage budget. I will choose the cost budget. Selecting set your budget. Here, give a name to your budget and giving account budget period. This is for how often you want the budget to reset.
I will choose monthly, leave the rest as default and scroll down to the budgeted amount. I will give $1 as my budget for the entire period. Here, my period is one month. Now scroll down and choose configure alerts. Here we will send an alert by setting the alert threshold To 80% of the budget. So now if we are charged more than 0.8 dollars, then we will get an alert.
The alert will be sent via email. Here, we need to give the email address to which the alert should be sent. You can add up to 10 email addresses by selecting Add email contact. For now, we will give only one email, select confirm budget, review the budget and then select Create the budget has been created. So this will help us in managing costs. Next, select billing preferences under preferences.
Here, under cost management preferences, select receive free tire usage alerts to receive free tire usage alerts, generally AWS cents free tire usage alerts to the email address that you used by Creating Your AWS account, you can give a different email address here. I will give it at the Rainmaker demo.com and then save preferences. Now, I will get alerts when the free time usage is approaching limits. Okay, I will end this video here. In this video, we learn the following what is billing and Cost Management by should we create an AWS budget, creating an AWS budget, setting up the billing preferences. In the next video, we will learn about the road ahead