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‎learn-pr/wwl-azure/guided-project-cost-guardrails/1-introduction.yml‎

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### YamlMime:ModuleUnit
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uid: learn.wwl.guided-project-cost-guardrails.introduction
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title: Introduction
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metadata:
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title: Introduction
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description: "Introduction"
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ms.date: 03/16/2026
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author: wwlpublish
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ms.author: robbarefoot
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ms.topic: unit
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ms.custom:
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- N/A
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durationInMinutes: 2
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content: |
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[!include[](includes/1-introduction.md)]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/2-exercise-tag-resources.yml‎

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### YamlMime:ModuleUnit
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uid: learn.wwl.guided-project-cost-guardrails.exercise-tag-resources
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title: Exercise - Apply cost-tracking tags
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metadata:
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title: Exercise - Apply cost-tracking tags
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description: "Exercise - Apply cost-tracking tags"
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ms.date: 03/16/2026
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author: wwlpublish
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ms.author: robbarefoot
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ms.topic: unit
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ms.custom:
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- N/A
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durationInMinutes: 7
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content: |
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[!include[](includes/2-exercise-tag-resources.md)]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/3-exercise-create-budget-alerts.yml‎

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### YamlMime:ModuleUnit
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uid: learn.wwl.guided-project-cost-guardrails.exercise-create-budget-alerts
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title: Exercise - Create budget and alerts
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metadata:
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title: Exercise - Create budget and alerts
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description: "Exercise - Create budget and alerts"
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ms.date: 03/16/2026
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author: wwlpublish
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ms.author: robbarefoot
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ms.topic: unit
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ms.custom:
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- N/A
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durationInMinutes: 7
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content: |
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[!include[](includes/3-exercise-create-budget-alerts.md)]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/4-exercise-assign-test-policy.yml‎

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### YamlMime:ModuleUnit
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uid: learn.wwl.guided-project-cost-guardrails.exercise-assign-test-policy
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title: Exercise - Assign and test an Azure Policy
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metadata:
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title: Exercise - Assign and test an Azure Policy
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description: "Exercise - Assign and test an Azure Policy"
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ms.date: 03/16/2026
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author: wwlpublish
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ms.author: robbarefoot
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ms.topic: unit
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ms.custom:
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- N/A
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durationInMinutes: 6
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content: |
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[!include[](includes/4-exercise-assign-test-policy.md)]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/5-validate-success.yml‎

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### YamlMime:ModuleUnit
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uid: learn.wwl.guided-project-cost-guardrails.validate-success
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title: Validate success
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metadata:
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title: Validate success
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description: "Validate success"
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ms.date: 03/16/2026
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author: wwlpublish
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ms.author: robbarefoot
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ms.topic: unit
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ms.custom:
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- N/A
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durationInMinutes: 10
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content: |
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[!include[](includes/5-validate-success.md)]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/6-clean-up-resources.yml‎

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### YamlMime:ModuleUnit
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uid: learn.wwl.guided-project-cost-guardrails.clean-up-resources
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title: Clean up resources
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metadata:
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title: Clean up resources
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description: "Clean up resources"
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ms.date: 03/16/2026
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author: wwlpublish
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ms.author: robbarefoot
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ms.topic: unit
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ms.custom:
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- N/A
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durationInMinutes: 5
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content: |
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[!include[](includes/6-clean-up-resources.md)]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/7-summary.yml‎

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### YamlMime:ModuleUnit
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uid: learn.wwl.guided-project-cost-guardrails.summary
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title: Summary
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metadata:
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title: Summary
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description: "Summary"
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ms.date: 03/16/2026
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author: wwlpublish
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ms.author: robbarefoot
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ms.topic: unit
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ms.custom:
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- N/A
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durationInMinutes: 2
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content: |
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[!include[](includes/7-summary.md)]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/includes/1-introduction.md‎

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This guided project focuses on setting up cost guardrails using resource tags, budgets, and Azure Policy.
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Azure provides several tools to help you control cloud spending. Tags let you categorize resources for cost reporting. Budgets send alerts when spending approaches a threshold. Azure Policy enforces organizational rules — like restricting which regions resources can be deployed to — automatically.
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## Scenario
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Your pilot team has a limited monthly cloud budget and needs clear controls in place before a broader rollout. You tag resources for cost tracking, create a budget with alert thresholds, and assign an Azure Policy that restricts resource creation to an approved region. These guardrails give the team early visibility into spending and prevent noncompliant deployments.
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- Exercise 1 - Apply organizational tags for cost tracking.
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- Exercise 2 - Create a budget with alert thresholds.
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- Exercise 3 - Assign and test an Azure Policy for region compliance.
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:::image type="content" source="../media/overview-architecture.png" alt-text="Diagram showing the three cost guardrail pillars: tags for categorization, budgets for spending alerts, and Azure Policy for compliance enforcement." border="false":::
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By the end of this project, you have practical experience setting up cost controls and compliance policies that protect a cloud environment from overspending and configuration drift.
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> [!NOTE]
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> This is a guided project module where you complete a project by following step-by-step instructions.
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## Skilling areas
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In this project, you practice skills in the following areas:
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**Apply resource tags for cost tracking**
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+ Tag resource groups and resources with key-value pairs.
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+ Use tags to categorize resources by environment and owner.
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**Configure budgets and alerts**
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+ Create a budget scoped to a resource group.
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+ Set alert thresholds at 80% and 100% of the budget.
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+ Configure email notifications for budget alerts.
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**Assign and test Azure Policy**
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+ Find and assign a built-in policy definition.
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+ Test that the policy blocks noncompliant resource creation.
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+ Review the compliance dashboard.
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> [!IMPORTANT]
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> This project uses the Azure portal for every step. No prior Azure experience is required.

‎learn-pr/wwl-azure/guided-project-cost-guardrails/includes/2-exercise-tag-resources.md‎

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This guided project consists of the following exercises:
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- **Apply cost-tracking tags**
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- Create budget and alerts
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- Assign and test Azure Policy
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In this exercise, you create a resource group and storage account, then apply organizational tags to both. Tags are the foundation of cost governance — they let you categorize resources by team, environment, or project so you can track spending accurately.
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This exercise includes the following tasks:
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- Prepare the environment
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- Create a test storage account
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- Tag the resource group
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- Tag the storage account
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**Outcome:** Tagged pilot resources ready for cost reporting and filtering.
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> [!TIP]
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> Pause after each major action and confirm the page status before moving on. This habit prevents compounding mistakes.
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## Task 1: Prepare the environment
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Set up your Azure environment before you begin. You create a resource group and a test resource as a pilot scope for governance controls.
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> [!WARNING]
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> This project creates Azure resources that may incur charges. Complete the clean-up unit when you're done to avoid unintended expenses.
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1. Sign in to the [Azure portal](https://portal.azure.com) with an account that has permissions to create budgets and policy assignments.
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2. In the portal search bar, search for **Resource groups** and select **Resource groups**.
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3. Select **+ Create**.
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4. For **Name**, enter **rg-gp-cost-guardrails**.
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5. For **Region**, choose your preferred region.
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6. Select **Review + create** and then select **Create**.
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7. Note the email address you want to use for budget alert notifications.
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## Task 2: Create a test storage account
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Create a storage account inside the resource group. This gives you a resource to tag and a scope for policy testing.
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1. In the portal search bar, search for **Storage accounts** and select **Storage accounts**.
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2. Select **+ Create**.
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3. On the **Basics** tab, select **rg-gp-cost-guardrails** as the resource group.
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4. For **Storage account name**, enter a globally unique name (for example, **stgpcostguard** followed by your initials and a number).
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5. For **Region**, use the same region as the resource group.
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6. For **Preferred Storage Type**, select **Azure Blob Storage or Azure Data Lake Storage Gen 2**.
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7. For **Performance**, select **Standard**.
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8. For **Redundancy**, select **Locally-redundant storage (LRS)**.
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9. Select **Review + create** and then select **Create**.
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10. When deployment finishes, select **Go to resource**.
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## Task 3: Tag the resource group
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Apply organizational tags to your resource group. Tags are key-value pairs that help you categorize resources, track costs, and enforce policies at scale.
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1. In the portal search bar, search for **Resource groups** and select **Resource groups**.
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2. Select **rg-gp-cost-guardrails** from the list.
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3. In the left menu, select **Tags**.
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4. Add the tag **environment** with the value **pilot**.
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5. Add the tag **owner** with the value **it-team**.
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6. Select **Apply**.
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> [!NOTE]
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> **Validation step:** Confirm the resource group displays both tags (**environment: pilot** and **owner: it-team**).
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> [!NOTE]
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> Each exercise includes validation steps like this one. Track your results as you go — you'll review them all in the validation unit at the end of this module.
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## Task 4: Tag the storage account
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Apply the same tags to your test resource. Resource-level tags ensure consistent tagging across all assets, enabling accurate cost allocation and governance reporting.
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1. In the portal search bar, search for **Storage accounts** and select **Storage accounts**.
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2. Select the storage account you created (for example, **stgpcostguard**).
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3. In the left menu, select **Tags**.
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4. Add the tag **environment** with the value **pilot**.
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5. Add the tag **owner** with the value **it-team**.
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6. Select **Apply**.
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> [!NOTE]
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> **Validation step:** Confirm the storage account also displays both tags, matching the resource group.
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> [!NOTE]

‎learn-pr/wwl-azure/guided-project-cost-guardrails/includes/3-exercise-create-budget-alerts.md‎

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This guided project consists of the following exercises:
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- Apply cost-tracking tags
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- **Create budget and alerts**
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- Assign and test Azure Policy
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In this exercise, you create a budget with alert thresholds that notify you before spending exceeds your target. Budget alerts give you early warning so you can investigate and adjust before costs get out of control.
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This exercise includes the following tasks:
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- Open Cost Management and start the budget
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- Configure and create the budget
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**Outcome:** Budget thresholds configured with actionable notifications.
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## Task 1: Open Cost Management and start the budget
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Navigate to the Cost Management service where you define spend limits and alerts. This is the central place to monitor and control cloud spending across your subscription and resources.
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1. In the portal search bar, search for **Cost Management + Billing** and select **Cost Management + Billing**.
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2. In the left menu, select **Budgets**.
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3. Select **+ Add**.
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4. Choose a scope you can manage. If resource-group-level budgets are available in your environment, use **rg-gp-cost-guardrails**. Otherwise use the subscription scope and note the broader scope in your validation notes.
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> [!NOTE]
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> **Validation step:** Confirm Cost Management + Billing is open and you have selected your budget scope.
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## Task 2: Configure and create the budget
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Set up your budget parameters including amount, reset period, and alert thresholds. These alerts will notify you before you overspend, giving you time to investigate and adjust.
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1. For **Name**, enter **gp-pilot-budget**.
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2. For **Reset period**, select **Monthly**.
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3. For **Amount**, enter a small test value such as **10** (USD or your billing currency).
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4. Select **Next** to move to the alerts section.
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5. Select **+ Add** to add an alert condition.
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6. For **Type**, select **Actual**.
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7. For the threshold, enter **80** percent.
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8. In the **Alert recipients** field, enter your email address.
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9. Select **+ Add** to add a second alert condition.
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10. For **Type**, select **Actual**.
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11. For the threshold, enter **100** percent.
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12. In the **Alert recipients** field, enter the same email address.
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13. Select **Create**.
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> [!NOTE]
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> **Validation step:** Confirm the **gp-pilot-budget** appears in the budgets list with two alert thresholds (80% and 100%).
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> [!NOTE]

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