Configure Azure entitlement budget

To monitor Azure entitlement usage when it exceeds a defined budget threshold, you’ll need to complete the following steps:

1. Configure a budget for the Azure entitlement – see the instructions below.
   
2. Create an Azure budget alert policy – see the steps in this article.
   

Why Azure Budget Alerts Matter

Azure budget alerts help you detect unexpected changes in usage or spending early. They are particularly useful in scenarios such as:

1. Customer provisions Azure resources without understanding their pricing, leading to an overall higher spend.
2. Customer starts using their resources more intensively without realizing it.
   

Things to keep in mind

Alert Delay: Alerts are not generated in real time. There is typically a 24–36 hour delay between usage and alert creation.

Pricing Basis: Budget usage is based on your revenue/sell price, not Microsoft's raw cost rate.

Alert Suppression: If multiple alerts from the same policy are triggered for an entitlement, only the highest severity alert will be signalled.

How to set a budget for an Azure Entitlement

To configure a spending limit for an entitlement:

1. Navigate to the Subscriptions page of the associated Azure Plan.
2. Locate the entitlement and open the Actions menu.
3. Select Set Monthly Budget.
4. Enter the budget amount.
5. Click Submit to apply the monthly limit for that entitlement.
   

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