diff --git a/pkg/resourcemanager/azuresql/azuresqldb/azuresqldb_reconcile.go b/pkg/resourcemanager/azuresql/azuresqldb/azuresqldb_reconcile.go
index 637569122a5..fae66455458 100644
--- a/pkg/resourcemanager/azuresql/azuresqldb/azuresqldb_reconcile.go
+++ b/pkg/resourcemanager/azuresql/azuresqldb/azuresqldb_reconcile.go
@@ -75,6 +75,7 @@ func (db *AzureSqlDbManager) Ensure(ctx context.Context, obj runtime.Object, opt
 		}
 		if !helpers.ContainsString(ignore, azerr.Type) {
 			instance.Status.Message = err.Error()
+			instance.Status.Provisioning = false
 			return false, fmt.Errorf("AzureSqlDb GetDB error %v", err)
 		}
 	}
@@ -84,19 +85,26 @@ func (db *AzureSqlDbManager) Ensure(ctx context.Context, obj runtime.Object, opt
 		instance.Status.Message = err.Error()
 		azerr := errhelp.NewAzureErrorAzureError(err)
 
+		// resource request has been sent to ARM
+		if azerr.Type == errhelp.AsyncOpIncompleteError {
+			instance.Status.Provisioning = true
+			return false, nil
+		}
+
 		// the errors that can arise during reconcilliation where we simply requeue
 		catch := []string{
 			errhelp.ResourceGroupNotFoundErrorCode,
 			errhelp.ParentNotFoundErrorCode,
-			errhelp.AsyncOpIncompleteError,
 		}
 		if helpers.ContainsString(catch, azerr.Type) {
+			instance.Status.Provisioning = false
 			return false, nil
 		}
 
 		// assertion that a 404 error implies that the Azure SQL server hasn't been provisioned yet
 		if resp != nil && resp.StatusCode == 404 {
 			instance.Status.Message = fmt.Sprintf("Waiting for SQL Server %s to provision", server)
+			instance.Status.Provisioning = false
 			return false, nil
 		}
 
diff --git a/pkg/resourcemanager/azuresql/azuresqlvnetrule/azuresqlvnetrule_reconcile.go b/pkg/resourcemanager/azuresql/azuresqlvnetrule/azuresqlvnetrule_reconcile.go
index 2aa1c31ab2d..dc64bfb88df 100644
--- a/pkg/resourcemanager/azuresql/azuresqlvnetrule/azuresqlvnetrule_reconcile.go
+++ b/pkg/resourcemanager/azuresql/azuresqlvnetrule/azuresqlvnetrule_reconcile.go
@@ -6,7 +6,6 @@ package azuresqlvnetrule
 import (
 	"context"
 	"fmt"
-	"strings"
 
 	"github.com/Azure/azure-sdk-for-go/services/preview/sql/mgmt/2015-05-01-preview/sql"
 	azurev1alpha1 "github.com/Azure/azure-service-operator/api/v1alpha1"
@@ -34,14 +33,12 @@ func (vr *AzureSqlVNetRuleManager) Ensure(ctx context.Context, obj runtime.Objec
 
 	vnetrule, err := vr.GetSQLVNetRule(ctx, groupName, server, ruleName)
 	if err == nil {
-		if vnetrule.VirtualNetworkRuleProperties != nil {
-			if vnetrule.VirtualNetworkRuleProperties.State == sql.Ready {
-				instance.Status.Provisioning = false
-				instance.Status.Provisioned = true
-				instance.Status.Message = resourcemanager.SuccessMsg
-				instance.Status.ResourceId = *vnetrule.ID
-				return true, nil
-			}
+		if vnetrule.VirtualNetworkRuleProperties != nil && vnetrule.VirtualNetworkRuleProperties.State == sql.Ready {
+			instance.Status.Provisioning = false
+			instance.Status.Provisioned = true
+			instance.Status.Message = resourcemanager.SuccessMsg
+			instance.Status.ResourceId = *vnetrule.ID
+			return true, nil
 		}
 		return false, nil
 	}
@@ -53,7 +50,8 @@ func (vr *AzureSqlVNetRuleManager) Ensure(ctx context.Context, obj runtime.Objec
 		instance.Status.Message = err.Error()
 		azerr := errhelp.NewAzureErrorAzureError(err)
 
-		if strings.Contains(azerr.Type, errhelp.AsyncOpIncompleteError) {
+		if azerr.Type == errhelp.AsyncOpIncompleteError {
+			instance.Status.Provisioning = true
 			instance.Status.Message = "Resource request submitted to Azure successfully"
 			return false, nil
 		}
@@ -63,11 +61,11 @@ func (vr *AzureSqlVNetRuleManager) Ensure(ctx context.Context, obj runtime.Objec
 			errhelp.ParentNotFoundErrorCode,
 			errhelp.ResourceNotFound,
 		}
-
 		if helpers.ContainsString(ignorableErrors, azerr.Type) {
 			instance.Status.Provisioning = false
 			return false, nil
 		}
+
 		return false, err
 	}