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articles/cost-management-billing/scope-level/manage-licenses-centrally.md

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# How Azure applies centrally assigned SQL licenses to hourly usage
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This article provides details about how centrally managing Azure Hybrid Benefit for SQL Server at a scope-level works. The process starts with an administrator assigning licenses to subscription or a billing account scope.
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This article provides details about how centrally managing Azure Hybrid Benefit for SQL Server works. The process starts with an administrator assigning licenses to subscription or a billing account scope.
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Each resource reports its usage once an hour using the appropriate full price or pay-as-you-go meters. Internally in Azure, the Usage Application engine evaluates the available normalized cores (NCs) and applies them for that hour. For a given hour of vCore resource consumption, the pay-as-you-go meters are switched to the corresponding Azure Hybrid Benefit meter with a zero ($0) price if there's enough unutilized NCs in the selected scope.
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## License discount
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The following diagram shows the discounting process when there's enough unutilized NCs to discount the entire vCore consumption by all the SQL resources for the hour.
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Prices shown in the following image are for example purposes only.
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Prices shown in the following image are only examples.
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:::image type="content" source="./media/manage-licenses-centrally/fully-discounted-consumption.svg" alt-text="Diagram showing fully discounted vCore consumption." border="false" lightbox="./media/manage-licenses-centrally/fully-discounted-consumption.svg":::
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When the vCore consumption by the SQL resources in the scope exceeds the number of unutilized NCs, the excess vCore consumption is billed using the appropriate pay-as-you-go meter. The following diagram shows the discounting process when the vCore consumption exceeds the number of unutilized NCs.
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Prices shown in the following image are for example purposes only.
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Prices shown in the following image are only examples.
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:::image type="content" source="./media/manage-licenses-centrally/partially-discounted-consumption.svg" alt-text="Diagram showing partially discounted consumption." border="false" lightbox="./media/manage-licenses-centrally/partially-discounted-consumption.svg":::
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