Understanding Key Items in Azure Invoices and How to Verify Costs

1. Scope of This Article

Understanding Microsoft Azure invoices and effectively managing costs requires grasping various items and their relationships. This article explains the key items included in Azure billing summaries and introduces methods for cost verification.

2. Background

Accurately understanding Azure resource usage and associated costs is an essential element in service operation. Particularly for project budget management and cost optimization, it is crucial for Product Owners (POs) and business-side members to comprehend Azure billing items. This understanding enables efficient resource utilization and waste-free budget management.

3. Content

3.1. Key Items in Billing Summaries

The following table lists key items included in Azure invoices, along with their descriptions and examples.

3.2. Relationships Between Meter Category, Meter Subcategory, Meter Name, and Instance Data

Understanding the usage and cost of Azure resources requires grasping the following four elements.

Meter Category

Meter Category is a broad classification of resources and services. For example, “Web Apps” refers to hosting services for web applications and APIs. This helps in broadly understanding what type of resources are being used. Specifically, hosting services provided by Azure Web Apps fall under this category.

Meter Subcategory

Meter Subcategory is a sub-classification under Meter Category, indicating specific service plans or resource types. For example, “S1” is an App Service plan that offers standard features and performance. This subcategory allows for a more detailed identification of which plans or resource types are being utilized. For Web Apps, subcategories include plans like Basic, Standard, and Premium.

Meter Name

Meter Name represents the specific usage under a Meter Subcategory. For example, “S1 App Service Plan” indicates the usage of resources under a particular plan. This meter name allows for the identification of specific instances or resource usage. Meter names are used to track detailed usage of specific resources or services.

Instance Data

Instance Data refers to the name or identifier of a specific resource instance. For example, “webapp-example20230726” denotes a particular Web App instance in the “example” project. This data helps accurately track which instance is being used. Instance Data is unique for each resource and provides detailed information on usage.

Example

The following table provides an example of cost verification for Azure Web Apps, explaining the relationships between each element.

This table shows the selection of the “Web Apps” meter category, which indicates hosting services for web applications. Next, specific plans like “S1,” “P1v2,” and “B1” are shown as meter subcategories. Each plan has a specific meter name like “S1 App Service Plan.” Finally, the specific instances, such as “webapp-example20230726,” indicate the detailed usage.

Azure App Service charges are based on the selected plan and instance size. This allows for detailed understanding and tracking of the usage and cost of each Azure Web Apps resource.

3.3. Resource Usage Meters and Azure’s Billing System

3.3.1. Resource Usage Meters

Azure charges based on resource usage. Instead of directly charging for resource costs, multiple meters track resource usage to calculate the fees. Meters record usage throughout the resource’s active period, and the invoice amount is calculated based on this data.

When a single Azure resource, like Azure Web Apps, is created, multiple meter instances are generated to track its usage. Each meter tracks the resource usage over time, outputting usage records that Azure uses to calculate the invoice amount.

For example, a single web application created with Azure Web Apps might use the following meters:

• App Service plan hours
• Data transfer in
• Data transfer out
• Storage capacity
• SSL connection hours
• Compute hours

Once the web application is created, each meter begins issuing usage records, and this usage and meter pricing are tracked in the Azure metering system.

3.3.2. Verifying Usage Files and Invoice Amounts

When reviewing the details of an Azure invoice, it is crucial to reference the usage CSV file. This file records detailed information on the usage and corresponding costs of each resource. Summing up all the values in the cost column at the end of the file should match the usage charges listed on the invoice.

Usage charges are displayed at the meter level, and the following terms have the same meaning in both the invoice and the detailed usage file.

• Billing Cycle: The billing cycle on the invoice is the same as the billing period shown in the detailed usage file.
• Meter Name: By filtering the invoice’s corresponding resource by Meter Name, you can verify the cost of a specific meter.

For example, by filtering by the meter name corresponding to “S1 App Service Plan” listed on the invoice and summing up the cost values, you can confirm that they match the detailed line items on the invoice.

3.3.3. Adjusting Reserved Purchase Charges

To adjust reserved purchase charges, filter the usage CSV file by ChargeType as “Purchase.” This will display all reserved purchase charges for the month. By comparing the Meter Name and Meter Subcategory in the usage file with the Resource and Type on the invoice, you can verify these charges. The total cost values should precisely match the individual resource usage charges billed on the invoice.

4. Conclusion

Understanding Azure invoices and the relationships between various items allows for effective cost management. By comprehending the four key elements — Meter Category, Meter Subcategory, Meter Name, and Instance Data — and referencing the usage files, detailed cost verification can be performed. This enables accurate tracking of resource usage and efficient cost management.