AWS Organizations

Central management of multiple AWS accounts — grouping, governance policies, and one consolidated bill.

Verified against AWS documentation · 2026-08-28

Key facts

  1. 01One management account owns the org; everything else is a member account — the management account can never be restricted by SCPs
  2. 02Accounts are grouped into OUs under a single root, nested up to 5 levels deep; policies attached higher up flow down to everything beneath
  3. 03SCPs are guardrails, not grants — they set the maximum possible permissions but never give anyone access; IAM still has to allow the action
  4. 04Consolidated billing: one bill for all accounts, usage pooled for volume discounts, and Reserved Instances / Savings Plans shared across accounts by default
  5. 05Two modes: consolidated billing only, or all features (required for SCPs and most governance) — all features is the exam default assumption

Exam triggers

Phrases and scenarios that point here.

  • "Multiple accounts", "centrally manage", "single bill", "volume discounts across accounts"
  • Restrict what member accounts can do, even their root users → SCP
  • New accounts created automatically with guardrails already applied → Organizations + OUs
  • Share Reserved Instance or Savings Plans discounts across accounts → consolidated billing
  • An SCP denies it → nothing in that account can do it, not even an admin with full IAM permissions

Not this service

  • Prescriptive multi-account setup with a landing zone and pre-built guardrails → AWS Control Tower (built on top of Organizations)
  • Permissions for users and roles within one account → IAM
  • Sharing resources (subnets, Transit Gateways) between accounts → AWS RAM

Use cases

  1. 01Separate accounts for dev, staging, and prod under one org — a blast radius boundary, so a leaked dev credential can't touch production
  2. 02Sandbox OU with an SCP denying expensive services, so an intern can experiment without accidentally launching a p5 instance
  3. 03Deny-region SCP pinning workloads to approved Regions for data residency — think of it as a fence the whole org lives inside
  4. 04One finance team paying a single bill while fifty engineering teams each own their account, with pooled usage unlocking volume discount tiers nobody hits alone
  5. 05Org-wide CloudTrail trail from the management account, so member account admins can't switch off their own audit logging

How it's charged

  1. 01Free — no charge for the org, OUs, policies, or account management
  2. 02You pay only for the AWS resources running inside each member account, rolled into the management account's consolidated bill

Commonly confused with

References