Help Center> Cost Center> User Guide> Cost Analysis> Cost Breakdown Rules
Updated on 2022-12-13 GMT+08:00

Cost Breakdown Rules

This section describes the rules for recording amortized costs and net amortized costs.

Bill Amount and Amortized Amount

For details, see Bill Amount and Amortized Amount.

Pay-Per-Use Resources

For pay-per-use resources settled on a monthly basis (for example, CDN billed by 95th percentile bandwidth), the amortized cost is recorded from when the bills are settled. This explains why there may be a peak in the middle of a month.

The amortized costs of pay-per-use resources are calculated based on the resource usage.
  • If the time when a pay-per-use resource started being used (the first time expenditures were incurred) and the transaction time (when the amount due was paid) were in the same billing cycle, the amortized cost of the resource is recorded for the day when it started being used.

    Example: Suppose you used a pay-per-use resource from June 10, 2021 23:00:00 to June 10, 2021 23:59:59, the transaction time was June 11, 2021 00:53:30, and the amount due was $2 USD.

    Cost amortization: As the time when expenditures were incurred (June 10, 2021 23:00:00) and the transaction time (June 11, 2021 00:53:30) were in the same billing cycle, the amount due ($2 USD) is recorded as the amortized cost for June 10, 2021.

  • If the time when a pay-per-use resource started being used (the first time expenditures were incurred) and the transaction time (when the amount due was paid) were not in the same billing cycle, the amortized cost of the resource is recorded for the transaction day.

    Example: Suppose you used a pay-per-use resource from June 30, 2021 23:00:00 to June 30, 2021 23:59:59, the transaction time was July 1, 2021 00:53:30, and the amount due was .

    Cost amortization: As the time when expenditures were incurred (June 30, 2021 23:00:00) and the transaction time (July 1, 2021 00:53:30) were not in the same billing cycle, the amount due ($2 USD) is recorded as the amortized cost for July 1, 2021.

The cost amortization of pay-per-use resources involving account adjustments will change the historical data.

Yearly/Monthly Subscriptions and Reserved Instances

As of August 01, 2020 00:00:00 GMT+08:00, the costs of new subscriptions are amortized based on the following rules:

  • Daily amortized cost = Order amount / Number of days in the order effective term (number of days from the effective time to the expiration time)
  • If the resources in an order are not enabled, the costs of such resources are not amortized. The amortized costs do not include the cost of order subscription or the cost of the order that is automatically unsubscribed from due to resource enabling failure.
  • If the order effective time and order expiration time are on the same day, the cost of the order is not amortized but is recorded for that day, instead.
  • If a subscription is renewed but the order effective time has elapsed, the historical costs will still be amortized over the time the order was effective.
  • Order unsubscription: Daily amortized cost for unsubscribed or downgraded orders = Refund amount/Number of days in the order effective term (from the effective time to the expiration time) If the effective time has passed, the cost incurred during the elapsed days is recorded as amortized cost for the unsubscription day.

    Suppose you subscribed to a 1-month (30-day) product for $60 USD and requested a full refund on the third day of the subscription month.

    The cost amortized over the first two days was $2 USD each day, the cost for the third day is $-6 USD, and the cost for each day in the remaining days from the 4th day to the 30th day will be $-2 USD.

    Order Line

    1st Day

    2nd Day

    3rd Day

    4th Day

    5th Day

    6th Day

    ...

    30th Day

    Amortization for subscription

    2

    2

    2

    2

    2

    2

    ...

    2

    Full refund

    -

    -

    -6

    -2

    -2

    -2

    ...

    -2

  • The cost amortization involving account adjustments will change the historical data.

    Suppose that you purchase a 1-month subscription (from 1st day to 30th) at $60 USD. On the 3rd day, an error is found and Huawei Cloud needs to return the order amount of $60 USD and then charge you $66 USD.

    In this case, as Huawei Cloud needs to return $60 USD first, the daily amortized cost is $2 USD; as Huawei Cloud needs to charge you $66 USD, the daily amortized cost is $2.2 USD.

    Order Line

    1st Day

    2nd Day

    3rd Day

    4th Day

    5th Day

    6th Day

    ...

    30th Day

    Amortization for subscription

    2

    2

    2

    2

    2

    2

    ...

    2

    Amortization for account adjustment (refund)

    -2

    -2

    -2

    -2

    -2

    -2

    ...

    -2

    Amortization for account adjustment (payment)

    2.2

    2.2

    2.2

    2.2

    2.2

    2.2

    ......

    2.2

Enterprise Projects and Tags for Amortized Costs

Yearly/Monthly Subscriptions

  • Enterprise project: By default, the enterprise project selected for the order is used for the amortized costs of your yearly/monthly resources.
  • Tags: Starting from June 1, 2021, the resource tags used when the amortized costs are calculated are applied to the daily amortized costs of your yearly/monthly resources. Tags for costs amortized before June 1, 2021 do not change even if the tags for their resources change.

Pay-per-Use Resources

The enterprise project and cost tags used when pay-per-use resources are settled are used for your amortized costs.

Example

If you placed a yearly/monthly order (valid from January 1, 2021 to February 1, 2021) and paid $3.5 USD, and then unsubscribe from the order on January 13, 2021 and pay a handling fee of $0.35 USD, the total cost is $3.5 USD, the validity period is 32 days, and the daily amortized cost will be $0.109375 USD (3.5/32 = 0.109375).

You will see two amortized cost records for January 2021.

  • One for the total cost of $3.390625 USD to be amortized over the period from January 1, 2021 to January 31, 2021.
  • The other for the cost to be amortized for the remaining days after unsubscription ($-1.7385 USD). The total cost for the period from January 1, 2021 to January 13, 2021 (the unsubscription day) is , the handling fee is , and the actual refund amount is $1.83 USD (3.5 - 1.32 - 0.35 = 1.83). The amortized cost for the remaining days after unsubscription in January is $1.7385 USD (1.83/20 x 19 = 1.7385).