Untaggable Cost Tagging

Not all cloud costs can be tagged at the source.

In real-world cloud environments, a significant portion of spend originates from system-generated, billing-level, or shared infrastructure charges that do not inherit resource tags.

If left unmanaged, these costs appear as:

  • Unallocated

  • Uncategorized

  • Attributed to "No Owner"

  • Dumped into root accounts

This creates reporting gaps and weakens financial accountability.

Virtual Tags solve this.


Why Some Costs Cannot Be Tagged

Certain charges are generated:

  • At billing time (not resource level)

  • Across accounts

  • Outside of compute resources

  • At platform or enterprise agreement level

These charges do not carry native tags, even if tagging hygiene is strong.

Examples include:

  • Data transfer between services

  • Enterprise Discount Program (EDP) adjustments

  • Support plan fees

  • Reserved Instance (RI) amortization

  • Savings Plan (SP) amortization

  • Cross-account networking

  • RDS automated backups

  • Out-of-cycle adjustments

  • Marketplace subscriptions


How Virtual Tags Solve This

Virtual Tags allow rule-based allocation using billing metadata such as:

  • Usage Type

  • Charge Type

  • Service

  • Region

  • Account

  • Resource Name

Instead of modifying cloud tags, OneLens applies allocation logic during the cost pipeline.

This ensures 100% cost allocation coverage — even for costs that cannot be tagged natively.


Example Rule

If:

  • Usage Type contains "DataTransfer"

  • Region = us-east-1

Then:

→ Assign to Platform Shared Cost Centre

This ensures shared networking costs are consistently allocated to the correct business owner.


Common Untaggable Cost Examples

Below is a reference table of real-world untaggable or system-level charges and how they are typically handled.

Cloud
Cost Type
Why It’s Untaggable
Typical Allocation Strategy
Example Virtual Tag Rule

AWS

Inter-AZ / Inter-Region Data Transfer

Generated at network billing layer

Allocate to Platform or proportional to consuming BUs

Provider = AWS AND Usage Type contains "DataTransfer"

AWS

NAT Gateway Data Processing

Network-layer charge

Proportional split across consuming cost centres

Service = AmazonVPC AND Usage Type contains "NatGateway"

AWS

RDS Automated Backup Storage

System-generated backup usage

Assign to owning application team

Service = AmazonRDS AND Usage Type contains "BackupUsage"

AWS

Enterprise Support Fee

% of monthly spend

Even split or proportional across all cost centres

Charge Type = Support

AWS

Marketplace Subscription

Subscription-level billing

Assign to owning BU

Billing Entity = AWS Marketplace

AWS

EDP (Enterprise Discount Program) Credit

Applied post usage

Proportional to total spend

Line Item Type = Discount

AWS

OOC (Out-of-Cycle) Charge

Manual billing adjustment

Assign to Finance Shared cost centre

Line Item Type = Fee AND Description contains "Out of Cycle"

Cloud
Cost Type
Why It’s Untaggable
Typical Allocation Strategy
Example Virtual Tag Rule

Azure

Inter-Region Data Transfer

Generated at network layer

Allocate to Platform or proportional

Provider = Azure AND Meter Category contains "Bandwidth"

Azure

Azure Support Plan

Subscription-level charge

Even split across BUs

Meter Category = Support

Azure

Backup Vault Storage

Generated by Azure Backup service

Assign to owning BU

Service Name = Azure Backup

Azure

Marketplace Charges

Subscription-level billing

Map to owning BU

Publisher Type = Marketplace

Azure

EA (Enterprise Agreement) Credit

Applied at billing account level

Proportional across cost centres

Charge Type = Credit

Cloud
Cost Type
Why It’s Untaggable
Typical Allocation Strategy
Example Virtual Tag Rule

GCP

Inter-Region Network Egress

Network-layer billing

Proportional allocation

Provider = GCP AND SKU Description contains "Network Egress"

GCP

Committed Use Discount (CUD)

Billing-level construct

Proportional allocation

Credit Type contains "CommittedUseDiscount"

GCP

Sustained Use Discount

Applied post-usage

Proportional allocation

Credit Type contains "SustainedUsage"

GCP

Cloud Support

Billing account-level charge

Even split

Service Description contains "Support"

GCP

Snapshot Storage

Generated by system backup

Assign to owning BU

SKU Description contains "Snapshot"

GCP

Marketplace Subscription

Subscription billing

Assign to BU

Service Description contains "Marketplace"

Cloud
Cost Type
Why It’s Untaggable
Typical Allocation Strategy
Example Virtual Tag Rule

OCI

Data Transfer Outbound

Network-layer charge

Proportional allocation

Provider = OCI AND Usage Type contains "DataTransferOut"

OCI

Support Subscription

Account-level subscription

Even split

Service Name contains "Support"

OCI

Reserved Capacity

Billing-level allocation

Proportional allocation

Usage Type contains "ReservedCapacity"

OCI

Backup Storage

System-generated

Assign to owning BU

Service Name contains "Backup"

OCI

Marketplace Listing

Subscription billing

Map to BU

Service Category = Marketplace

How to Think About These Rules

When creating Virtual Tag rules for untaggable costs:

  1. Identify the billing dimension that uniquely describes the cost (Usage Type, Meter Category, SKU Description, Charge Type)

  2. Decide allocation strategy:

    • Even split

    • Proportional

    • Fixed percentage

  3. Assign to:

    • A Shared Platform cost centre

    • A Finance root cost centre

    • A Specific BU


What Happens Without Virtual Tags

Without rule-based allocation:

  • Untagged costs appear under “Unallocated”

  • Finance sees reconciliation gaps

  • BU-level reports become inaccurate

  • Engineering cannot identify optimization scope

  • Shared services distort team budgets

  • Leadership loses trust in reporting

Over time, this erodes cost accountability.


What Happens With Virtual Tags

With proper Virtual Tag configuration:

  • 100% cost allocation coverage

  • No orphan spend

  • Clean BU-level reporting

  • Fair shared cost distribution

  • Accurate margin analysis

  • Audit-ready cost transparency

Finance trusts the numbers. Engineering trusts the attribution. Leadership trusts the reporting.


Best Practice

Start by:

  1. Identifying top unallocated cost categories.

  2. Creating targeted Virtual Tag rules for those categories.

  3. Reviewing allocation impact before pipeline execution.

  4. Monitoring allocation accuracy monthly.

Untagged cost is not a tagging failure — it is a billing reality. Virtual Tags ensure that reality does not break your reporting.

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