Subscriptions and management groups in Azure - Step-by-Step Execution

Process Flow - Subscriptions and management groups

Start: Create Management Groups

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Assign Subscriptions to Groups

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Apply Policies and Access Controls

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Inheritance of Settings

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Manage Billing and Resources

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End

This flow shows how management groups organize subscriptions, apply policies, and manage access and billing.

Execution Sample

Azure

Create MG 'Corp'
Assign Sub1 to 'Corp'
Assign Sub2 to 'Corp'
Apply Policy to 'Corp'
Check Sub1 Policy
Check Sub2 Policy

This example creates a management group, assigns two subscriptions, applies a policy, and checks policy inheritance.

Process Table

Step	Action	Target	Result	Notes
1	Create Management Group	Corp	Management group 'Corp' created	Ready to organize subscriptions
2	Assign Subscription	Sub1 to Corp	Sub1 assigned to 'Corp'	Sub1 inherits Corp policies
3	Assign Subscription	Sub2 to Corp	Sub2 assigned to 'Corp'	Sub2 inherits Corp policies
4	Apply Policy	Corp	Policy applied to 'Corp'	Policy affects all child subscriptions
5	Check Policy	Sub1	Sub1 has policy from 'Corp'	Inheritance confirmed
6	Check Policy	Sub2	Sub2 has policy from 'Corp'	Inheritance confirmed
7	End	-	Execution complete	All subscriptions managed under 'Corp'

💡 All subscriptions assigned and policies applied via management group

Status Tracker

Variable	Start	After Step 1	After Step 2	After Step 3	After Step 4	After Step 5	After Step 6	Final
Management Groups	{}	{'Corp': {}}	{'Corp': {'Sub1'}}	{'Corp': {'Sub1', 'Sub2'}}	{'Corp': {'Sub1', 'Sub2'}, 'Policy': 'Applied'}	{'Corp': {'Sub1', 'Sub2'}, 'Policy': 'Applied'}	{'Corp': {'Sub1', 'Sub2'}, 'Policy': 'Applied'}	{'Corp': {'Sub1', 'Sub2'}, 'Policy': 'Applied'}
Subscriptions	{}	{}	{'Sub1': 'Corp'}	{'Sub1': 'Corp', 'Sub2': 'Corp'}	{'Sub1': 'Corp', 'Sub2': 'Corp'}	{'Sub1': 'Corp', 'Sub2': 'Corp'}	{'Sub1': 'Corp', 'Sub2': 'Corp'}	{'Sub1': 'Corp', 'Sub2': 'Corp'}
Policies	None	None	None	None	Policy on 'Corp'	Policy on 'Corp'	Policy on 'Corp'	Policy on 'Corp'

Key Moments - 3 Insights

Why do subscriptions inherit policies from management groups?

Because policies applied to a management group automatically apply to all subscriptions assigned to it, as shown in steps 4 to 6 in the execution table.

Can a subscription belong to more than one management group?

No, each subscription can only be assigned to one management group at a time, as shown in steps 2 and 3 where Sub1 and Sub2 are assigned individually.

What happens if a policy is applied directly to a subscription and also to its management group?

The subscription will have both policies applied, but management group policies provide a baseline that applies to all child subscriptions, ensuring consistent governance.

Visual Quiz - 3 Questions

Look at the execution table, at which step is the policy first applied to the management group?

A Step 2

B Step 4

C Step 5

D Step 6

💡 Hint

Check the 'Action' column for when 'Apply Policy' occurs.

According to the variable tracker, what is the state of 'Subscriptions' after Step 3?

A {'Sub1': 'Corp', 'Sub2': 'Corp'}

B {'Sub1': 'Corp'}

C {}

D {'Sub2': 'Corp'}

💡 Hint

Look at the 'Subscriptions' row under 'After Step 3' in the variable tracker.

If a new subscription Sub3 is assigned to 'Corp' after Step 6, what will happen to its policies?

A Sub3 will have a different policy

B Sub3 will not have any policies

C Sub3 will inherit the policy applied to 'Corp'

D Sub3 must be assigned a policy manually

💡 Hint

Refer to the concept that policies on management groups apply to all assigned subscriptions.

Concept Snapshot

Subscriptions and Management Groups in Azure:
- Management groups organize subscriptions hierarchically.
- Policies and access controls applied to groups affect all child subscriptions.
- Each subscription belongs to one management group.
- This structure helps manage governance and billing efficiently.
- Changes at group level propagate automatically to subscriptions.

Full Transcript

This visual execution shows how Azure management groups organize subscriptions. First, a management group named 'Corp' is created. Then, two subscriptions, Sub1 and Sub2, are assigned to 'Corp'. A policy is applied to the 'Corp' group, which automatically applies to both subscriptions. The variable tracker confirms the state changes after each step, showing subscriptions assigned and policies applied. Key moments clarify inheritance of policies and subscription assignment rules. The quiz tests understanding of when policies apply and how subscriptions relate to management groups.