Creating an Azure Service Principal

A Service Principal is an Azure app registration that allows CloudYali to securely access your cost data with read-only permissions. This guide provides step-by-step instructions for creating a Service Principal for your Azure account type.

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Option A: Using Azure Portal (Recommended)

Step 1: Create App Registration

1. Go to Azure Portal
2. Navigate to Microsoft Entra ID → App registrations
3. Click + New registration
4. Enter name: CloudYali-Billing
5. Click Register

Step 2: Get Credentials

1. Copy Application (client) ID from the Overview page
2. Copy Directory (tenant) ID from the Overview page

3. Go to Certificates & secrets → + New client secret
4. Description: CloudYali Integration
5. Expiration: 12 months / 24 months
6. Click Add and copy the secret Value (shown once only!)

caution

Copy the secret Value column, not the Secret ID. The Value is only shown once — if you navigate away without copying it, you'll need to create a new secret.

Step 3: Assign Permissions

Choose your account type below and follow the appropriate steps:

For PAYG Subscriptions:

1. Go to your Subscription → Access control (IAM)
2. Click + Add → Add role assignment
3. Select Reader role (search for "Reader")
4. Assign to CloudYali-Billing
5. Click Review + assign

Also assign Storage access:

1. Go to your Storage Account → Access control (IAM)
2. Click + Add → Add role assignment
3. Select Storage Blob Data Reader role

4. Assign to CloudYali-Billing
5. Click Review + assign

For MCA Billing Accounts:

⚠️ Prerequisite: Ensure "Azure charges" is set to "Yes"

• Go to Cost Management + Billing → Billing account properties
• Verify "Azure charges" is enabled

Assign Cost Management Role:

1. Go to Cost Management + Billing → Billing account properties
2. Go to Billing account → Access control (IAM)
3. Click + Add → Add role assignment
4. Select Billing Account Reader role
5. Assign to CloudYali-Billing
6. Click Review + assign

Assign Storage Role:

1. Go to your Storage Account → Access control (IAM)
2. Click + Add → Add role assignment
3. Select Storage Blob Data Reader role
4. Assign to CloudYali-Billing
5. Click Review + assign

For EA Enrollments:

⚠️ Prerequisite: Enterprise Admin must enable "Account Owner (AO) view charges"

• Contact your Enterprise Admin to enable this at enrollment level

Assign Cost Management Role:

1. Go to your Management Group or Enrollment → Access control (IAM)
2. Click + Add → Add role assignment
3. Select Reader role (or Enrollment Reader for enrollment scope)
4. Assign to CloudYali-Billing
5. Click Review + assign

Assign Storage Role:

1. Go to your Storage Account → Access control (IAM)
2. Click + Add → Add role assignment
3. Select Storage Blob Data Reader role
4. Assign to CloudYali-Billing
5. Click Review + assign

Save Your Credentials

Save these credentials - you'll need them in CloudYali:

• ✅ Application (Client) ID
• ✅ Directory (Tenant) ID
• ✅ Client Secret
• ✅ Subscription ID (for PAYG/EA)

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Option B: Using Azure CLI

For Pay-as-You-Go (PAYG):

# Login to Azure
az login

# Get your subscription ID
SUBSCRIPTION_ID=$(az account show --query id -o tsv)
echo "Subscription ID: $SUBSCRIPTION_ID"

# Create Service Principal with minimal Cost Management permissions
az ad sp create-for-rbac \
  --name "CloudYali-Billing" \
  --role "Reader" \
  --scopes /subscriptions/$SUBSCRIPTION_ID

# Save the output:
# {
#   "appId": "xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx",      ← Client ID
#   "password": "zzzz...",                                 ← Client Secret
#   "tenant": "yyyyyyyy-yyyy-yyyy-yyyy-yyyyyyyyyyyy"      ← Tenant ID
# }

Also assign Storage access:

STORAGE_ACCOUNT_NAME="your-storage-account-name"
RESOURCE_GROUP="your-resource-group"

az role assignment create \
  --assignee "CloudYali-Billing" \
  --role "Storage Blob Data Reader" \
  --scope "/subscriptions/$SUBSCRIPTION_ID/resourceGroups/$RESOURCE_GROUP/providers/Microsoft.Storage/storageAccounts/$STORAGE_ACCOUNT_NAME"

For Microsoft Customer Agreement (MCA):

⚠️ Prerequisites:

• Your billing account must have "Azure charges" setting enabled
• Go to Azure Portal → Cost Management + Billing → Billing account properties
• Verify "Azure charges" is set to "Yes"

az login

# Fetch your billing account
BILLING_ACCOUNT=$(az billing account list --query "[0].name" -o tsv)
if [ -z "$BILLING_ACCOUNT" ]; then
  echo "Error: No billing accounts found."
  exit 1
fi

# Create Service Principal with minimal Billing Account permissions
az ad sp create-for-rbac \
  --name "CloudYali-Billing" \
  --role "Billing Account Reader" \
  --scopes /providers/Microsoft.Billing/billingAccounts/$BILLING_ACCOUNT

# Also assign Storage access (replace with your details)
STORAGE_ACCOUNT_NAME="your-storage-account-name"
RESOURCE_GROUP="your-resource-group"

az role assignment create \
  --assignee "CloudYali-Billing" \
  --role "Storage Blob Data Reader" \
  --scope "/subscriptions/$SUBSCRIPTION_ID/resourceGroups/$RESOURCE_GROUP/providers/Microsoft.Storage/storageAccounts/$STORAGE_ACCOUNT_NAME"

For Enterprise Agreement (EA):

⚠️ Prerequisites:

• Your Enterprise Admin must enable "Account Owner (AO) view charges" at enrollment level
• Contact your Enterprise Admin to enable this setting if needed

az login

# Option 1: Management Group Scope (for multi-subscription EA - RECOMMENDED)
MANAGEMENT_GROUP_ID="your-mg-id"  # Replace with your Management Group ID

az ad sp create-for-rbac \
  --name "CloudYali-Billing" \
  --role "Reader" \
  --scopes /providers/Microsoft.Management/managementGroups/$MANAGEMENT_GROUP_ID

# Option 2: Enrollment Scope (for single enrollment)
# ENROLLMENT_ID=$(az billing account list --query "[0].name" -o tsv)
# az ad sp create-for-rbac \
#   --name "CloudYali-Billing" \
#   --role "Enrollment Reader" \
#   --scopes /providers/Microsoft.Billing/billingAccounts/$ENROLLMENT_ID

# Also assign Storage access
STORAGE_ACCOUNT_NAME="your-storage-account-name"
RESOURCE_GROUP="your-resource-group"
SUBSCRIPTION_ID=$(az account show --query id -o tsv)

az role assignment create \
  --assignee "CloudYali-Billing" \
  --role "Storage Blob Data Reader" \
  --scope "/subscriptions/$SUBSCRIPTION_ID/resourceGroups/$RESOURCE_GROUP/providers/Microsoft.Storage/storageAccounts/$STORAGE_ACCOUNT_NAME"

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Important Notes

Role Propagation Delay

⏱️ After assigning roles, wait 5-10 minutes for Azure to propagate the permissions before testing the connection. This is normal Azure RBAC behavior.

Minimal Permissions Principle

CloudYali uses only the minimal required roles:

• PAYG: Reader (read-only access to resources, cost data, and Advisor recommendations)
• MCA: Billing Account Reader (billing data only) + Reader (resources and cost data)
• EA: Reader or Enrollment Reader (read-only access to resources and cost data)
• All: Storage Blob Data Reader (read-only access to exported files)

Security Best Practices

• ✅ Service Principal credentials are encrypted with AES-256
• ✅ Stored in AWS Secrets Manager (not in application database)
• ✅ Read-only permissions only (never WRITE access)
• ✅ Separate credentials for each customer/account

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Troubleshooting

"Service Principal Creation Failed"

Solution:

1. Ensure you have Owner or Contributor role on the subscription
2. Verify Azure CLI is up to date: az upgrade
3. Try creating the role in the Azure Portal instead

"Role Assignment Failed"

Solution:

1. Verify the Service Principal exists: az ad sp show --id {client-id}
2. Ensure you have permissions to assign roles
3. Wait 5-10 minutes for role propagation
4. Try assigning through Azure Portal if CLI fails

"Cannot Find Billing Account"

For MCA:

1. Verify "Azure charges" is enabled in Cost Management + Billing
2. Ensure you're looking at the correct billing account
3. Contact your billing account owner if needed

For EA:

1. Contact your Enterprise Admin to verify enrollment access
2. Ensure "Account Owner view charges" is enabled

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Next Steps

Once you've created the Service Principal and assigned roles:

1. ✅ Have credentials saved (Client ID, Tenant ID, Client Secret, Subscription ID)
2. ✅ Wait 5-10 minutes for role propagation
3. ➡️ Continue to Configuring Cost Management Exports

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