Spend controls Phase 3: included usage caps + scaling cost controls guidance (#61770)

Co-authored-by: Copilot <223556219+Copilot@users.noreply.github.com>
Co-authored-by: Copilot Autofix powered by AI <175728472+Copilot@users.noreply.github.com>
Co-authored-by: Sophie <29382425+sophietheking@users.noreply.github.com>
Co-authored-by: ElizabethBarrord <elizabethbarrord@github.com>
Co-authored-by: Joe Clark <31087804+jc-clark@users.noreply.github.com>

Author: 6 people

content/billing/concepts/budgets-and-alerts.md

@@ -25,15 +25,23 @@ Each budget has a type and a scope that define which paid use contributes to spe
 
 * **Type**: Defines which metered product or SKU is measured.
 * **Scope**: Defines whether the budget applies to the whole account, or to a subset of repositories, organizations, cost centers (enterprise only), or users. User-scoped budgets are currently only supported for {% data variables.product.prodname_copilot_short %} {% data variables.product.prodname_ai_credits_short %}, and have three scopes:
+
   * **Universal**: applies to all licensed users by default
   * **Cost center user-level**: applies to every user in a cost center
   * **Individual**: overrides the above for specific users
 
-For more information about how user-level budgets work and how they interact with other budget controls, see [AUTOTITLE](/copilot/concepts/billing/budgets-for-usage-based-billing).
+For {% data variables.product.prodname_copilot_short %}, cost centers can also have included usage controls, which cap how much of the shared {% data variables.product.prodname_ai_credits_short %} pool a cost center can use before metered usage begins. This is a separate control from the budgets and the included usage alerts described below. See [AUTOTITLE](/copilot/concepts/billing/budgets-for-usage-based-billing#included-usage-controls-for-cost-centers).
+
+## Roles and access for budgets
+
+Enterprise owners and billing managers can create and edit enterprise and cost center budgets, and they receive budget alerts by default. Organization owners can set budgets for their own organization, and personal account owners can set budgets for their own account. Each of these roles can view usage for the scopes they manage.
 
 ## Budget alerts
 
-You can enable alerts for budgets to receive emails when usage reaches 75%, 90%, and 100% of the budget amount. Emails are sent to account owners and billing managers by default. Additional recipients can be added as needed.
+You can enable alerts for budgets to be notified when usage reaches 75%, 90%, and 100% of the budget amount. Alerts are shown in the {% data variables.product.github %} UI and sent by email. By default, alerts go to account owners and billing managers, and you can add additional recipients as needed. Budget alerts are available for budgets scoped to your enterprise, a cost center, an organization, or a repository.
+
+> [!NOTE]
+> Alerting for user-level budgets is not consistently available in all scenarios. Don't rely on user-level budget alerts as your only signal, also monitor usage at the cost center or enterprise level.
 
 ## Included usage alerts
 

content/billing/concepts/cost-centers.md

@@ -29,10 +29,19 @@ To get started with cost centers, see [AUTOTITLE](/billing/tutorials/control-cos
 
 For more details, see [AUTOTITLE](/billing/reference/cost-center-allocation).
 
+## Controlling included usage
+
+For cost centers that contain {% data variables.product.prodname_copilot_short %} licenses, you can apply included usage controls in addition to budgets.
+
+{% data reusables.billing.included-usage-controls %}
+
+This is separate from a cost center budget, which caps metered charges only after the shared pool of {% data variables.product.prodname_ai_credits_short %} is exhausted. For more information, see [AUTOTITLE](/copilot/concepts/billing/budgets-for-usage-based-billing#included-usage-controls-for-cost-centers).
+
 ## Cost center limitations
 
 * The maximum number of active cost centers per enterprise is 500.
 * The maximum number of resources per cost center is 25,000.
 * A maximum of 50 resources can be added to or removed from a cost center at a time.
 * Azure subscriptions can only be added to or removed from cost centers through the UI.
 * Outside collaborators or unaffiliated users can only be added to cost centers via the cost center API. For more information, see [AUTOTITLE](/billing/tutorials/control-costs-at-scale#add-resources-to-the-cost-center).
+* You can't set different budgets for teams within the same cost center. A budget applies to the whole cost center, so if two teams need separate budgets, create a separate cost center for each. Separate cost centers can share the same Azure billing identity.

content/billing/how-tos/products/use-cost-centers.md

@@ -36,7 +36,8 @@ When you create a cost center, you can add **organizations**, **repositories**,
 1. If your account is billed to Azure, you have the option to add an Azure ID. Your credentials will be verified against Azure to ensure the Azure IDs associated to your account are available.
 1. Under **Resources**, select the organizations, repositories, users, and/or enterprise teams that will be a part of the cost center.
 
-   >[!NOTE] A resource (organization, repository, or user) can only be assigned to one cost center at a time. If you add a resource that belongs to a different cost center, it will be moved to the new cost center and you will be notified.
+   > [!NOTE]
+   > A resource (organization, repository, user, or enterprise team) can only be assigned to one cost center at a time. If you add a resource that belongs to a different cost center, it will be moved to the new cost center and you will be notified.
 
 {% data reusables.billing.cost-center-create-button %}
 

content/billing/how-tos/set-up-budgets.md

@@ -149,6 +149,11 @@ You can edit or delete a budget at any time, but you cannot change the scope of
 1. In the list of budgets, click {% octicon "kebab-horizontal" aria-label="View actions" %} next to the budget you want to edit, and click **{% octicon "pencil" aria-hidden="true" aria-label="pencil" %} Edit** or **{% octicon "trash" aria-hidden="true" aria-label="trash" %} Delete**.
 1. Follow the prompts.
 
+### Controlling included usage for a cost center
+
+Budgets cap metered charges after the shared pool of {% data variables.product.prodname_ai_credits_short %} is exhausted. To cap how much of the pool a cost center can use **before** the metered phase, use an included usage control. {% data variables.product.github %} sets the cap automatically based on the licenses assigned to the cost center, and you choose whether members are blocked or roll into paid overage when the cap is reached. See [AUTOTITLE](/copilot/concepts/billing/budgets-for-usage-based-billing#included-usage-controls-for-cost-centers) and [AUTOTITLE](/billing/concepts/cost-centers).
+> [!NOTE]
+> Enabling included usage controls does not retroactively redistribute the shared {% data variables.product.prodname_ai_credits_short %} enterprise pool. After the setting is enabled, users in the cost center share only the included {% data variables.product.prodname_ai_credits_short %} funded by licenses attributed to that cost center. When the setting is disabled, users in the cost center can continue drawing from the shared enterprise pool.
 ## Next steps
 
 For {% data variables.product.prodname_copilot_short %}-specific budget guidance under usage-based billing, including user-level budgets and configuration scenarios, see [AUTOTITLE](/copilot/concepts/billing/budgets-for-usage-based-billing) and [AUTOTITLE](/copilot/tutorials/budgets/optimizing-your-budget-configuration).

content/billing/tutorials/control-costs-at-scale.md

@@ -106,7 +106,7 @@ Create one budget for each product, SKU, or group of SKUs that you want to contr
 
 ### Review existing budgets for conflicts
 
-After creating your cost center budgets, check existing enterprise-wide budgets to ensure they don't conflict with or override your new cost center budgets.
+After creating your cost center budgets, check existing enterprise-wide budgets to ensure they don't conflict with or override your new cost center budgets. When budgets overlap, the most restrictive one applies, so a low budget at a higher scope can block a cost center before its own budget is reached.
 
 Navigate to the "Budgets and alerts" page. You'll see two lists of budgets:
 
@@ -121,6 +121,14 @@ Review whether any enterprise budgets apply to the same products or SKUs as your
 
 Filter the other budgets list to show a scope of **Cost Centers**. You should see your new cost center with a row for each budget you created. Initially, usage will be near zero, but within a few days you'll see costs accumulating as users and repositories consume products beyond the allowance in their plan.
 
+### Troubleshooting budget conflicts
+
+Keep these limits in mind as you combine budgets across scopes:
+
+* **Budgets overlap, and the most restrictive one applies.** A user can be covered by an individual, cost center, organization, and enterprise budget at the same time. Whichever has the least headroom remaining blocks them first. If someone is blocked unexpectedly, review every scope that applies to them. For the full evaluation order, see [AUTOTITLE](/copilot/concepts/billing/budgets-for-usage-based-billing).
+* **You can't set different budgets for teams in the same cost center.** A budget applies to the whole cost center, not to teams within it. If two teams need separate budgets, create a separate cost center for each. Separate cost centers can still share the same Azure billing identity.
+* **Budgets don't add up across levels.** An enterprise budget isn't the sum of your cost center budgets, and raising one doesn't raise another. When you change a budget at one level, reconcile the totals at the others yourself.
+
 ## 4. Create a cost center with the REST API
 
 Now that you understand how to create cost centers in the user interface, you can explore the REST API to see how cost centers can be created programmatically. Understanding the API helps you evaluate whether automation would benefit your organization.

content/copilot/concepts/billing/budgets-for-usage-based-billing.md

@@ -46,6 +46,12 @@ When a cost center's budget is exhausted, only users in that cost center are blo
 > [!NOTE]
 > A cost center budget is different from a cost center user-level budget. A cost center budget caps the team's **total metered charges** after the pool is exhausted. A cost center user-level budget caps **each member's individual consumption** across both the pool and metered phases, the same way other user-level budgets do. You can apply both to the same cost center.
 
+### Included usage controls for cost centers
+
+{% data reusables.billing.included-usage-controls %}
+
+Unlike a cost center budget, which caps metered charges only after the shared pool of {% data variables.product.prodname_ai_credits_short %} is exhausted, an included usage control limits how much of the pool a cost center can draw **before** the metered phase begins. To enable it, see [AUTOTITLE](/billing/how-tos/set-up-budgets).
+
 ### Organization budget
 
 An organization budget caps metered charges for users who receive their {% data variables.product.prodname_copilot_short %} license through that organization. Like cost center budgets, it is only active after the shared pool is exhausted.

content/copilot/tutorials/budgets/optimizing-your-budget-configuration.md

@@ -22,6 +22,8 @@ Before optimizing your budget configuration, make sure you understand how budget
 
 If you haven't set up budgets yet, start with [AUTOTITLE](/copilot/tutorials/budgets/getting-started-with-budget-controls) to get the basics in place, then come back to this guide to optimize your configuration.
 
+To decide between a simple setup and cost-center-based controls before you fine-tune, see the basic and advanced approaches in [AUTOTITLE](/billing/tutorials/control-costs-at-scale#choose-your-approach-basic-or-advanced-spend-controls).
+
 ## Sizing your budgets
 
 The relationship between user-level budgets (ULB) and other budgets is the most common source of unexpected blocking. If user-level budgets collectively allow more consumption than the shared pool provides, the difference becomes metered charges, and your budgets need to be high enough to cover that gap.
@@ -34,6 +36,8 @@ Here's how to estimate:
 
 If you also use cost center budgets, the sum of your cost center budgets and your enterprise budget should cover the gap. The enterprise budget applies to users not assigned to a cost center.
 
+If you want each cost center to stay within the {% data variables.product.prodname_ai_credits_short %} its own licenses fund, apply an included usage control to that cost center. This automatically caps the team's draw from the shared pool, so heavy use by one team doesn't consume another team's share before metered budgets apply. See [AUTOTITLE](/copilot/concepts/billing/budgets-for-usage-based-billing#included-usage-controls-for-cost-centers).
+
 > [!TIP]
 > Whenever you raise user-level budgets, re-check this calculation. Raising ULBs without raising the enterprise budget can cause the enterprise budget to block users before they reach their individual budgets.
 
@@ -81,6 +85,7 @@ This is the simplest configuration and a good starting point for most enterprise
 **Configuration:**
 
 * Create **cost centers** scoped to each organization. See [AUTOTITLE](/billing/how-tos/products/use-cost-centers).
+* Apply an **included usage control** to each cost center so a business unit can't draw more of the shared pool than the included {% data variables.product.prodname_ai_credits_short %} its own licenses fund, choosing whether to block or allow paid overage at the cap.
 * Set a **cost center budget** for each business unit.
 * Set an **enterprise budget** as a failsafe for any users not assigned to a cost center.
 * Enable **"Stop usage when budget limit is reached"** on all budgets.

data/reusables/billing/included-usage-controls.md

@@ -0,0 +1 @@
+Included usage controls cap a cost center's included usage to the amount of {% data variables.product.prodname_ai_credits_short %} funded by the licenses assigned to that cost center. {% data variables.product.github %} sets this cap automatically and adjusts it as licensed members are added or removed, you don't enter an amount. When a cost center reaches its cap, you choose whether its members are blocked or their additional usage continues as paid overage.