Merge pull request #116687 from oslake/patch-40

Update understand-reservation-charges.md

Author: PRMerger12

articles/cost-management-billing/reservations/understand-reservation-charges.md

@@ -13,6 +13,8 @@ ms.author: banders
 
 After you buy an Azure SQL Database reserved capacity, the reservation discount is automatically applied to SQL Databases that match the attributes and quantity of the reservation. A reservation covers the compute costs of your SQL Database. You're charged for software, storage, and networking at the normal rates. You can cover the licensing costs for SQL Databases with [Azure Hybrid Benefit](https://azure.microsoft.com/pricing/hybrid-benefit/).
 
+Note that reservation discounts do not apply to Azure SQL Database serverless.
+
 For Reserved Virtual Machine Instances, see [Understand Azure Reserved VM Instances discount](../manage/understand-vm-reservation-charges.md).
 
 ## How reservation discount is applied