This document is a step by step guide for Public Cloud Customers to create and monitor budgets in their cloud account.

Creating a budget does not prevent any unintentional or overspend within a cloud account but serves as a benchmark and a monitoring tool for cloud spend. Teams using the cloud account are responsible for any costs incurred within their project.

Alert notifications are sent one time when the specified spend amount is reached. Alerts not repeated when you exceed your quota. We recommend setting multiple alerts to notify the team of the spend exceeding the desired project budget. 

Documentation:

How to Configure Azure Budgets and Costs Alerts in Azure Portal | Cost Management & Billing

Step By Step:

Step 1: Sign In to the Azure Portal

1. Navigate to the Azure Portal.

2. Sign in with your Azure account credentials.

Step 2: Go to Cost Management + Billing

1. In the left-hand menu, search for and select Cost Management + Billing.

2. Under the Cost Management section, click on Budgets.

Step 3: Select a Scope

1. Choose the appropriate scope (e.g., subscription, resource group, or management group) for which you want to create the budget.

   • If you're unsure, select your subscription.

Step 4: Create a Budget

1. Click the Add button or Create Budget.

2. Fill out the following details:

   • Name: Provide a descriptive name for your budget (e.g., "Monthly Budget Alert").

   • Reset Period: Choose how often the budget resets (e.g., monthly, quarterly, or annually).

   • Start Date: Set the start date for your budget.

   • Expiration Date: Optionally, set an expiration date.

   • Budget Amount: Define the total budget amount (e.g., $500).

Step 5: Configure Budget Alerts

1. Scroll down to the Alert Conditions section.

2. Add thresholds for alert notifications:

   • Example: Send alerts at 50%, 75%, and 100% of the budget.

   • Billing alerts only alert one time, so we recommend creating another alert at 125%, 150%, etc to capture any anomalies or spikes in cost

3. For each threshold:

   • Specify the percentage of the budget.

   • Select the alert recipients or action groups to notify (e.g., email or SMS).

Step 6: Add Action Groups (Optional)

1. To configure advanced notifications, click Manage Action Groups.

2. Create or select an action group:

   • Add recipients (email, SMS, or webhook) to the action group.

   • Test the action group to ensure notifications work as expected.

   • Make sure the email address that the alert is sent to will be someone who has agreed to monitor the billing of the subscription

Step 7: Review and Create

1. Double-check all the details of your budget and alert configuration.

2. Click Create to finalize the budget and alerts.

Step 8: Monitor Usage

1. After creating the budget, you can view it in the Budgets section of Cost Management.

2. Monitor your spending to ensure you're staying within the budget.

3. Adjust billing alert amounts as project cost changes.

Tips

• Use Azure's Cost Analysis tools to identify high-spending resources.

• Billing alerts only alert one time, recommend setting multiple alerts to capture any anomalies or spikes in cost

• Make sure the email address that the alert is sent to will be someone who has agreed to monitor the billing of the subscription.

• Adjust billing alert amounts as project cost changes.