Plain-language definition
A commitment discount trades flexibility for price. You promise to use (or pay for) a certain amount of capacity over one or three years; the provider gives you a lower per-hour or per-unit rate in return.
Why it complicates allocation
Commitment savings often appear as a single negative line on the invoice that doesn't tell you which project consumed the discounted capacity. Allocating them back to the project that actually used the capacity (not the one that bought it) requires the underlying usage records, not just the invoice line.
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Frequently asked
What's the difference between an RI and a Savings Plan?
Reserved Instances commit to a specific instance type and region. Savings Plans commit to a dollar amount per hour and apply across instance types, which is more flexible.
Should the team that bought the commitment own the savings?
Usually no — the savings should land on the project that actually used the discounted capacity, or the allocation creates the wrong incentives.