Ends in
00
days
00
hrs
00
mins
00
secs
ENROLL NOW

🧑‍💻 AWS Foundation Sale - Certified Cloud & AI Practitioner Mock Exams for only $12.99 each!

AWS Organizations

AWS Organizations

Last updated on December 28, 2025

AWS Organizations Cheat Sheet

AWS Organizations is a management service that enables centralized governance of multiple AWS accounts. It supports policy-based controls, consolidated billing, hierarchical account management, and organization-wide governance.

Key Terms

  • Organization: A collection of AWS accounts managed centrally.
  • Management Account: Main account that creates and administers the organization; acts as the payer account.
  • Member Account: Any account (besides the management account) that is part of an organization.
  • Administrative Root: Top container in the organization’s hierarchy; all OUs and accounts fall beneath it.
  • Organizational Unit (OU): Logical grouping of accounts; can contain nested OUs.
  • Policy: JSON-based document defining controls applied across accounts or OUs.
  • Service Control Policy (SCP): Organization-wide permission filter defining which services/actions are allowed.

Features

  1. Centralized Account Management
    • Create new AWS accounts or invite existing ones into an organization.
    • Organize accounts into Organizational Units (OUs) in a hierarchy (up to 5 levels deep).
    • Account migration: Move an account from one organization to another.
    • Support for large organizations: Manage up to 10,000 member accounts with quota approval.
  2. Consolidated Billing
    • Single payment method for all accounts.
    • Combined view of all charges and access to aggregated discounts.
  3. Policy-Based Governance
    • Apply Service Control Policies (SCPs) to organizations, OUs, or individual accounts.
    • Declarative policies: Enforce desired configurations for AWS services at scale.
    • Resource Control Policies (RCPs): Control maximum available permissions for resources.
    • Backup policies update: Flexible resource selection with conditions and resource keys.
    • Policies are inherited through hierarchy.
  4. Security Enhancements
    • Security Hub policies: Centrally manage Security Hub configurations across accounts.
    • Centralized root access: Manage root credentials across member accounts to prevent unauthorized access.
    • Chat applications policies: Control account access via Slack, Teams, etc.
    • Service Control Policies (SCPs) enforce organization-wide restrictions.
    • Permissions boundaries ensure IAM policies cannot exceed SCP restrictions.
    • ABAC (tag-based authorization) applies across accounts, OUs, users, and policies.
  5. Monitoring & Notifications
    • Account state monitoring: Track Active, Suspended, or Closed states across accounts via console, CLI, or SDKs.
    • AWS User Notifications integration: Centrally configure and view notifications across accounts.
    • AMS Self-Service Reporting (SSR) integration: Aggregate self-service reports across accounts.
  6. Managed Policies Updates
    • AWSOrganizationsFullAccess: Enables viewing and modifying account names.
    • DeclarativePoliciesEC2Report policy: Enables declarative EC2 reporting.
    • AWSOrganizationsReadOnlyAccess: Enables viewing root email addresses and enabled regions.
  7. Usability & Documentation
    • Scenario-driven documentation and reorganized content for improved readability.
    • Opt-out guidance for all supported AWS AI services.
  8. Lifecycle Management
    • Automatically create and manage accounts for new teams, apps, or environments.
    • Remove AWS accounts from an organization to make them standalone.

Use Cases 

  • Multi-Account Best Practices
    • Separate environments: Dev, Test, Prod.
    • Isolate workloads for security and blast-radius reduction.
    • Manage departments/business units independently.
  • Central Governance
    • Apply mandatory policies organization-wide:
      • Restrict unapproved AWS regions.
      • Prevent disabling CloudTrail.
      • Require encryption and logging.
      • Ensure compliance across accounts.
  • Financial Control
    • Centralize cost tracking.
    • Allocate budgets per OU or team.
    • Leverage discounted pricing through aggregated usage.
  • Tutorials dojo strip
  • Lifecycle Management
    • Automatically create/manage accounts for new teams, apps, or environments.

Administrative Actions

  • Create an AWS account and add it to your organization, or add an existing AWS account to your organization.
  • Organize your AWS accounts into groups called organizational units (OUs).
  • Organize your OUs into a hierarchy that reflects your company’s structure.
  • Centrally manage and attach policies to the entire organization, OUs, or individual AWS accounts.

Concepts

  • An organization is a collection of AWS accounts you can organize into a hierarchy and manage centrally.

  • Management Account: The AWS account used to create the organization. Cannot be changed. Responsible for paying all charges accrued by member accounts.

  • From the management account, you can create, invite, or remove accounts, and attach policies to administrative roots, OUs, or accounts.

  • Member Account: Any AWS account other than the management account. Can belong to only one organization.

  • Administrative Root: Top-most container in the organization hierarchy; you can create OUs under it.

  • Organizational Unit (OU): Groups AWS accounts; can contain nested OUs.

  • Policy: Document with statements defining controls applied to accounts or OUs.

  • Service Control Policy (SCP): Filters allowed services/actions; does not grant permissions.

AWS Organizations Feature Sets

  • Consolidated Billing: All organizations support basic billing management.

  • All Features Enabled: Includes consolidated billing plus advanced features like SCPs.

  • Accounts can be removed and converted to standalone accounts.

Organization Hierarchy

  • Hierarchy can be five levels deep including root and lowest OUs.

  • Policies are inherited through hierarchical connections.

  • Policies can be assigned at different points in the hierarchy.

  • Tags or user-defined attributes can be attached to OUs, root, and policies for ABAC (Attribute-Based Access Control).

AWS Training AWS Organizations 2

Security

A. Service Control Policies (SCPs)

  • Enforce organization-wide restrictions.
  • Limit IAM permissions for all identities in an account.
  • Prevent usage of disallowed services or operations.
  • Guarantee global security requirements (e.g., MFA, encryption).

B. Permissions Boundary

  • SCPs act as the outer boundary.
  • IAM policies cannot exceed SCP restrictions.

C. Account Roles

  • Management account:
    • Full administrative authority
    • Pays all bills
  • Member accounts:
    • Controlled through SCPs
    • Belong to only one organization at a time

D. Tag-Based Authorization

  • Apply ABAC to control access using tags on:
    • Accounts
    • OUs
    • Users
    • Policies

AWS Organizations Pricing

  • AWS Organizations service is free. Only the usage of AWS resources in member accounts incurs costs.

Managing Multi-Account AWS Environments Using AWS Organizations:

Note: If you are studying for the AWS Certified Security Specialty exam, we highly recommend that you take our AWS Certified Security – Specialty Practice Exams and read our Security Specialty exam study guide.

AWS Certified Security - Specialty Exam Study Path

Validate Your Knowledge

Question 1

A company requires corporate IT governance and cost oversight of all of its AWS resources across its divisions around the world. Their corporate divisions want to maintain administrative control of the discrete AWS resources they consume and ensure that those resources are separate from other divisions.

Which of the following options will support the autonomy of each corporate division while enabling the corporate IT to maintain governance and cost oversight? (Select TWO.)

  1. Use AWS Trusted Advisor and AWS Resource Groups Tag Editor
  2. Enable IAM cross-account access for all corporate IT administrators in each child account.
  3. Create separate VPCs for each division within the corporate IT AWS account. Launch an AWS Transit Gateway with equal-cost multipath routing  (ECMP) and VPN tunnels for intra-VPC communication.
  4. Use AWS Consolidated Billing by creating AWS Organizations to link the divisions’ accounts to a parent corporate account.
  5. Free AWS Courses
  6. Create separate Availability Zones for each division within the corporate IT AWS account. Improve communication between the two AZs using the AWS Global Accelerator.

Correct Answers: 2,4

You can use an IAM role to delegate access to resources that are in different AWS accounts that you own. You share resources in one account with users in a different account. By setting up cross-account access in this way, you don’t need to create individual IAM users in each account. In addition, users don’t have to sign out of one account and sign into another in order to access resources that are in different AWS accounts.

https://media.tutorialsdojo.com/aws-organizations-diagram-saa-c02.png

You can use the consolidated billing feature in AWS Organizations to consolidate payment for multiple AWS accounts or multiple AISPL accounts. With consolidated billing, you can see a combined view of AWS charges incurred by all of your accounts. You can also get a cost report for each member account that is associated with your master account. Consolidated billing is offered at no additional charge. AWS and AISPL accounts can’t be consolidated together.

The combined use of IAM and Consolidated Billing will support the autonomy of each corporate division while enabling corporate IT to maintain governance and cost oversight. Hence, the correct choices are:

– Enable IAM cross-account access for all corporate IT administrators in each child account

 – Use AWS Consolidated Billing by creating AWS Organizations to link the divisions’ accounts to a parent corporate account

Using AWS Trusted Advisor and AWS Resource Groups Tag Editor is incorrect. Trusted Advisor is an online tool that provides you real-time guidance to help you provision your resources following AWS best practices. It only provides you alerts on areas where you do not adhere to best practices and tells you how to improve them. It does not assist in maintaining governance over your AWS accounts. Additionally, the AWS Resource Groups Tag Editor simply allows you to add, edit, and delete tags to multiple AWS resources at once for easier identification and monitoring.

Creating separate VPCs for each division within the corporate IT AWS account. Launch an AWS Transit Gateway with equal-cost multipath routing  (ECMP) and VPN tunnels for intra-VPC communication is incorrect because creating separate VPCs would not separate the divisions from each other since they will still be operating under the same account and therefore contribute to the same billing each month. AWS Transit Gateway connects VPCs and on-premises networks through a central hub and acts as a cloud router where each new connection is only made once. For this particular scenario, it is suitable to use AWS Organizations instead of setting up an AWS Transit Gateway since the objective is for maintaining administrative control of the AWS resources and not for network connectivity.

Creating separate Availability Zones for each division within the corporate IT AWS account. Improve communication between the two AZs using the AWS Global Accelerator is incorrect because you do not need to create Availability Zones. They are already provided for you by AWS right from the start, and not all services support multiple AZ deployments. In addition, having separate Availability Zones in your VPC does not meet the requirement of supporting the autonomy of each corporate division. The AWS Global Accelerator is a service that uses the AWS global network to optimize the network path from your users to your applications and not between your Availability Zones.

References:

http://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/consolidated-billing.html
https://docs.aws.amazon.com/IAM/latest/UserGuide/tutorial_cross-account-with-roles.html

Note: This question was extracted from our AWS Certified Solutions Architect Associate Practice Exams.

Question 2

A multinational manufacturing company has multiple AWS accounts in multiple AWS regions across North America, Europe, and Asia. The solutions architect has been tasked to set up AWS Organizations to centrally manage policies and have full administrative control across the multiple AWS accounts owned by the company.

Which of the following options is the recommended implementation to achieve this requirement with the LEAST effort?

  1. Set up AWS Organizations by establishing cross-account access from the master account to all member AWS accounts of the company. The master account will automatically have full administrative control across all member accounts.
  2. Set up AWS Organizations by sending an invitation to the master account of your organization from each of the member accounts of the company. Create an OrganizationAccountAccessRole IAM role in the member account and grant permission to the master account to assume the role.
  3. Use AWS Control Tower from the master account and enroll all the member AWS accounts of the company. AWS Control Tower will automatically provision the needed IAM permissions to have full administrative control across all member accounts.
  4. Set up AWS Organizations by sending an invitation to all member accounts of the company from the master account of your organization. Create an OrganizationAccountAccessRole IAM role in the member account and grant permission to the master account to assume the role.

Correct Answer: 4

After you create an Organization and verify that you own the email address associated with the master account, you can invite existing AWS accounts to join your organization. When you invite an account, AWS Organizations sends an invitation to the account owner, who decides whether to accept or decline the invitation. You can use the AWS Organizations console to initiate and manage invitations that you send to other accounts. You can send an invitation to another account only from the master account of your organization.

If you are the administrator of an AWS account, you also can accept or decline an invitation from an organization. If you accept, your account becomes a member of that organization. Your account can join only one organization, so if you receive multiple invitations to join, you can accept only one.

When an invited account joins your organization, you do not automatically have full administrator control over the account, unlike created accounts. If you want the master account to have full administrative control over an invited member account, you must create the  OrganizationAccountAccessRole IAM role in the member account and grant permission to the master account to assume the role.

Therefore, the correct answer is: Set up AWS Organizations by sending an invitation to all member accounts of the company from the master account of your organization. Create an OrganizationAccountAccessRole IAM role in the member account and grant permission to the master account to assume the role.

The option that says: Set up AWS Organizations by establishing cross-account access from the master account to all member AWS accounts of the company. The master account will automatically have full administrative control across all member accounts is incorrect. Cross-account access is primarily used for scenarios where you need to grant your IAM users permission to switch to roles within your AWS account or to roles defined in other AWS accounts that you own.

The option that says: Set up AWS Organizations by sending an invitation to the master account of your organization from each of the member accounts of the company. Create an OrganizationAccountAccessRole IAM role in the member account and grant permission to the master account to assume the role is incorrect. It entails a lot of effort to send an individual invitation to the master account from each of the member accounts of the company. It’s stated in the scenario that you should achieve this requirement with the LEAST effort, and you can do this by sending an invitation to all member accounts of the company from the master account of your organization.

The option that says: Use AWS Control Tower from the master account and enroll all the member AWS accounts of the company. AWS Control Tower will automatically provision the needed IAM permissions to have full administrative control across all member accounts is incorrect. AWS Control Tower can be used to set up and manage multiple AWS accounts. However, it will not automatically provision IAM permissions for all member accounts.

References:

https://docs.aws.amazon.com/organizations/latest/userguide/orgs_manage_accounts_invites.html
https://docs.aws.amazon.com/organizations/latest/userguide/orgs_manage_accounts.html
https://docs.aws.amazon.com/organizations/latest/userguide/orgs_manage_accounts_create.html

Note: This question was extracted from our AWS Certified Solutions Architect Professional Practice Exams.

For more AWS practice exam questions with detailed explanations, visit the Tutorials Dojo Portal:

Tutorials Dojo AWS Practice Tests

AWS Organizations Cheat Sheet References:

https://docs.aws.amazon.com/organizations/latest/userguide/
https://aws.amazon.com/organizations/features/
https://aws.amazon.com/organizations/faqs/

🧑‍💻 AWS Foundation Sale – Certified Cloud & AI Practitioner Mock Exams for only $12.99 each!

Tutorials Dojo portal

Learn AWS with our PlayCloud Hands-On Labs

$2.99 AWS and Azure Exam Study Guide eBooks

tutorials dojo study guide eBook

New AWS Generative AI Developer Professional Course AIP-C01

AIP-C01 Exam Guide AIP-C01 examtopics AWS Certified Generative AI Developer Professional Exam Domains AIP-C01

Learn GCP By Doing! Try Our GCP PlayCloud

Learn Azure with our Azure PlayCloud

FREE AI and AWS Digital Courses

FREE AWS, Azure, GCP Practice Test Samplers

Subscribe to our YouTube Channel

Tutorials Dojo YouTube Channel

Follow Us On Linkedin

Written by: Jon Bonso

Jon Bonso is the co-founder of Tutorials Dojo, an EdTech startup and an AWS Digital Training Partner that provides high-quality educational materials in the cloud computing space. He graduated from Mapúa Institute of Technology in 2007 with a bachelor's degree in Information Technology. Jon holds 10 AWS Certifications and is also an active AWS Community Builder since 2020.

AWS, Azure, and GCP Certifications are consistently among the top-paying IT certifications in the world, considering that most companies have now shifted to the cloud. Earn over $150,000 per year with an AWS, Azure, or GCP certification!

Follow us on LinkedIn, YouTube, Facebook, or join our Slack study group. More importantly, answer as many practice exams as you can to help increase your chances of passing your certification exams on your first try!

View Our AWS, Azure, and GCP Exam Reviewers Check out our FREE courses

Our Community

~98%
passing rate
Around 95-98% of our students pass the AWS Certification exams after training with our courses.
200k+
students
Over 200k enrollees choose Tutorials Dojo in preparing for their AWS Certification exams.
~4.8
ratings
Our courses are highly rated by our enrollees from all over the world.

What our students say about us?