diff --git a/stackit/internal/services/sqlserverflexbeta/database/mapper.go b/stackit/internal/services/sqlserverflexbeta/database/mapper.go
index 349f7717..7d82039a 100644
--- a/stackit/internal/services/sqlserverflexbeta/database/mapper.go
+++ b/stackit/internal/services/sqlserverflexbeta/database/mapper.go
@@ -79,7 +79,10 @@ func mapResourceFields(source *sqlserverflexbeta.GetDatabaseResponse, model *res
 	model.ProjectId = types.StringValue(model.ProjectId.ValueString())
 	model.InstanceId = types.StringValue(model.InstanceId.ValueString())
 
+	model.Compatibility = types.Int64Value(source.GetCompatibilityLevel())
 	model.CompatibilityLevel = types.Int64Value(source.GetCompatibilityLevel())
+
+	model.Collation = types.StringValue(source.GetCollationName()) // it does not come back from api
 	model.CollationName = types.StringValue(source.GetCollationName())
 
 	return nil
diff --git a/stackit/internal/services/sqlserverflexbeta/database/resource.go b/stackit/internal/services/sqlserverflexbeta/database/resource.go
index 652575fc..7c191e42 100644
--- a/stackit/internal/services/sqlserverflexbeta/database/resource.go
+++ b/stackit/internal/services/sqlserverflexbeta/database/resource.go
@@ -174,13 +174,18 @@ func (r *databaseResource) Create(ctx context.Context, req resource.CreateReques
 	databaseName := data.Name.ValueString()
 	ctx = tflog.SetField(ctx, "database_name", databaseName)
 
-	payLoad := sqlserverflexbeta.CreateDatabaseRequestPayload{
-		Collation:     data.Collation.ValueStringPointer(),
-		Compatibility: data.Compatibility.ValueInt64Pointer(),
-		Name:          data.Name.ValueStringPointer(),
-		Owner:         data.Owner.ValueStringPointer(),
+	payLoad := sqlserverflexbeta.CreateDatabaseRequestPayload{}
+	if !data.Collation.IsNull() && !data.Collation.IsUnknown() {
+		payLoad.Collation = data.Collation.ValueStringPointer()
 	}
 
+	if !data.Compatibility.IsNull() && !data.Compatibility.IsUnknown() {
+		payLoad.Compatibility = data.Compatibility.ValueInt64Pointer()
+	}
+
+	payLoad.Name = data.Name.ValueStringPointer()
+	payLoad.Owner = data.Owner.ValueStringPointer()
+
 	_, err := wait.WaitForUserWaitHandler(
 		ctx,
 		r.client,
diff --git a/stackit/internal/services/sqlserverflexbeta/sqlserverflex_acc_test.go b/stackit/internal/services/sqlserverflexbeta/sqlserverflex_acc_test.go
index 9c091cde..e6c776dc 100644
--- a/stackit/internal/services/sqlserverflexbeta/sqlserverflex_acc_test.go
+++ b/stackit/internal/services/sqlserverflexbeta/sqlserverflex_acc_test.go
@@ -10,6 +10,7 @@ import (
 
 	"github.com/hashicorp/terraform-plugin-testing/helper/acctest"
 	"github.com/hashicorp/terraform-plugin-testing/helper/resource"
+	"github.com/hashicorp/terraform-plugin-testing/terraform"
 	sqlserverflexbeta "tf-provider.git.onstackit.cloud/stackit-dev-tools/terraform-provider-stackitprivatepreview/stackit/internal/services/sqlserverflexbeta/instance"
 
 	"tf-provider.git.onstackit.cloud/stackit-dev-tools/terraform-provider-stackitprivatepreview/internal/testutils"
@@ -19,6 +20,8 @@ import (
 	fwresource "github.com/hashicorp/terraform-plugin-framework/resource"
 )
 
+const providerPrefix = "stackitprivatepreview_sqlserverflexbeta"
+
 func TestInstanceResourceSchema(t *testing.T) {
 	t.Parallel()
 
@@ -84,9 +87,15 @@ type User struct {
 }
 
 type Database struct {
-	Name      string
-	ProjectId string
-	Owner     string
+	Name          string
+	ProjectId     string
+	Owner         string
+	Collation     string
+	Compatibility string
+}
+
+func resName(res, name string) string {
+	return fmt.Sprintf("%s_%s.%s", providerPrefix, res, name)
 }
 
 func getExample() resData {
@@ -111,10 +120,6 @@ func getExample() resData {
 
 func TestAccInstance(t *testing.T) {
 	exData := getExample()
-	resName := fmt.Sprintf(
-		"stackitprivatepreview_sqlserverflexbeta_instance.%s",
-		exData.TfName,
-	)
 
 	updNameData := exData
 	updNameData.Name = "name-updated"
@@ -133,8 +138,8 @@ func TestAccInstance(t *testing.T) {
 					exData,
 				),
 				Check: resource.ComposeAggregateTestCheckFunc(
-					resource.TestCheckResourceAttr(resName, "name", exData.Name),
-					resource.TestCheckResourceAttrSet(resName, "id"),
+					resource.TestCheckResourceAttr(resName("instance", exData.TfName), "name", exData.Name),
+					resource.TestCheckResourceAttrSet(resName("instance", exData.TfName), "id"),
 				),
 			},
 			// Update name and verify
@@ -144,7 +149,7 @@ func TestAccInstance(t *testing.T) {
 					updNameData,
 				),
 				Check: resource.ComposeTestCheckFunc(
-					resource.TestCheckResourceAttr(resName, "name", updNameData.Name),
+					resource.TestCheckResourceAttr(resName("instance", exData.TfName), "name", updNameData.Name),
 				),
 			},
 			// Update size and verify
@@ -155,12 +160,15 @@ func TestAccInstance(t *testing.T) {
 				),
 				Check: resource.ComposeTestCheckFunc(
 					resource.TestCheckResourceAttr(
-						resName,
+						resName("instance", exData.TfName),
 						"storage.size",
 						strconv.Itoa(int(updSizeData.Size)),
 					),
 				),
 			},
+			{
+				RefreshState: true,
+			},
 			//// Import test
 			//{
 			//	ResourceName:      "example_resource.test",
@@ -171,49 +179,7 @@ func TestAccInstance(t *testing.T) {
 	})
 }
 
-func TestAccInstanceWithUsers(t *testing.T) {
-	data := getExample()
-	userName := "testUser"
-	data.Users = []User{
-		{
-			Name:      userName,
-			ProjectId: os.Getenv("TF_ACC_PROJECT_ID"),
-			Roles:     []string{"##STACKIT_LoginManager##", "##STACKIT_DatabaseManager##"},
-		},
-	}
-
-	resName := fmt.Sprintf(
-		"stackitprivatepreview_sqlserverflexbeta_instance.%s",
-		data.TfName,
-	)
-
-	resUserName := fmt.Sprintf(
-		"stackitprivatepreview_sqlserverflexbeta_user.%s",
-		userName,
-	)
-
-	resource.Test(t, resource.TestCase{
-		PreCheck:                 func() { testAccPreCheck(t) },
-		ProtoV6ProviderFactories: testutils.TestAccProtoV6ProviderFactories,
-		Steps: []resource.TestStep{
-			// Create and verify
-			{
-				Config: testutils.StringFromTemplateMust(
-					"testdata/instance_template.gompl",
-					data,
-				),
-				Check: resource.ComposeAggregateTestCheckFunc(
-					resource.TestCheckResourceAttr(resName, "name", data.Name),
-					resource.TestCheckResourceAttrSet(resName, "id"),
-					resource.TestCheckResourceAttr(resUserName, "name", userName),
-					resource.TestCheckResourceAttrSet(resUserName, "id"),
-				),
-			},
-		},
-	})
-}
-
-func TestAccInstanceWithDatabases(t *testing.T) {
+func TestAccInstanceNoEncryption(t *testing.T) {
 	data := getExample()
 	t.Logf("  ... working on instance %s", data.TfName)
 	dbName := "testDb"
@@ -233,20 +199,104 @@ func TestAccInstanceWithDatabases(t *testing.T) {
 		},
 	}
 
-	resName := fmt.Sprintf(
-		"stackitprivatepreview_sqlserverflexbeta_instance.%s",
-		data.TfName,
-	)
+	resource.Test(t, resource.TestCase{
+		PreCheck:                 func() { testAccPreCheck(t) },
+		ProtoV6ProviderFactories: testutils.TestAccProtoV6ProviderFactories,
+		Steps: []resource.TestStep{
+			// Create and verify
+			{
+				Config: testutils.StringFromTemplateMust(
+					"testdata/instance_template.gompl",
+					data,
+				),
+				Check: resource.ComposeAggregateTestCheckFunc(
+					// check instance values are set
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "id"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "backup_schedule"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "edition"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "flavor_id"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "instance_id"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "is_deletable"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "name"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "replicas"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "retention_days"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "status"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "version"),
 
-	resUserName := fmt.Sprintf(
-		"stackitprivatepreview_sqlserverflexbeta_user.%s",
-		userName,
-	)
+					resource.TestCheckNoResourceAttr(resName("instance", data.TfName), "encryption"),
 
-	resDbName := fmt.Sprintf(
-		"stackitprivatepreview_sqlserverflexbeta_database.%s",
-		dbName,
-	)
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.kek_key_id"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.kek_key_version"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.kek_key_ring_id"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.service_account"),
+
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.access_scope"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.acl"),
+
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.instance_address"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.router_address"),
+
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "storage.class"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "storage.size"),
+
+					// check instance values are correct
+					resource.TestCheckResourceAttr(resName("instance", data.TfName), "name", data.Name),
+
+					// check user values are set
+					resource.TestCheckResourceAttrSet(resName("user", userName), "id"),
+					resource.TestCheckResourceAttrSet(resName("user", userName), "username"),
+					// resource.TestCheckResourceAttrSet(resName("user", userName), "roles"),
+
+					func(s *terraform.State) error {
+						return nil
+					},
+
+					// check user values are correct
+					resource.TestCheckResourceAttr(resName("user", userName), "username", userName),
+					resource.TestCheckResourceAttr(resName("user", userName), "roles.#", "2"),
+
+					// check database values are set
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "id"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "name"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "owner"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "compatibility"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "collation"),
+
+					// check database values are correct
+					resource.TestCheckResourceAttr(resName("database", dbName), "name", dbName),
+					resource.TestCheckResourceAttr(resName("database", dbName), "owner", userName),
+				),
+			},
+		},
+	})
+}
+
+func TestAccInstanceEncryption(t *testing.T) {
+	data := getExample()
+	t.Logf("  ... working on instance %s", data.TfName)
+	dbName := "testDb"
+	userName := "testUser"
+	data.Users = []User{
+		{
+			Name:      userName,
+			ProjectId: os.Getenv("TF_ACC_PROJECT_ID"),
+			Roles:     []string{"##STACKIT_LoginManager##", "##STACKIT_DatabaseManager##"},
+		},
+	}
+	data.Databases = []Database{
+		{
+			Name:      dbName,
+			ProjectId: os.Getenv("TF_ACC_PROJECT_ID"),
+			Owner:     userName,
+		},
+	}
+
+	data.UseEncryption = true
+	data.KekKeyId = "fe039bcf-8d7b-431a-801d-9e81371a6b7b"
+	data.KekKeyRingId = "6a2d95ab-3c4c-4963-a2bb-08d17a320e27"
+	data.KekKeyVersion = 1
+	data.KekServiceAccount = "henselinm-u2v3ex1@sa.stackit.cloud"
 
 	resource.Test(t, resource.TestCase{
 		PreCheck:                 func() { testAccPreCheck(t) },
@@ -259,15 +309,59 @@ func TestAccInstanceWithDatabases(t *testing.T) {
 					data,
 				),
 				Check: resource.ComposeAggregateTestCheckFunc(
-					resource.TestCheckResourceAttrSet(resName, "id"),
-					resource.TestCheckResourceAttr(resName, "name", data.Name),
+					// check instance values are set
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "id"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "backup_schedule"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "edition"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "flavor_id"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "instance_id"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "is_deletable"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "name"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "replicas"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "retention_days"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "status"),
+					resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "version"),
 
-					resource.TestCheckResourceAttrSet(resUserName, "id"),
-					resource.TestCheckResourceAttr(resUserName, "username", userName),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.kek_key_id"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.kek_key_version"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.kek_key_ring_id"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "encryption.service_account"),
 
-					resource.TestCheckResourceAttrSet(resDbName, "id"),
-					resource.TestCheckResourceAttr(resDbName, "name", dbName),
-					resource.TestCheckResourceAttr(resDbName, "owner", userName),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.access_scope"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.acl"),
+
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.instance_address"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "network.router_address"),
+
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "storage.class"),
+					//resource.TestCheckResourceAttrSet(resName("instance", data.TfName), "storage.size"),
+
+					// check instance values are correct
+					resource.TestCheckResourceAttr(resName("instance", data.TfName), "name", data.Name),
+
+					// check user values are set
+					resource.TestCheckResourceAttrSet(resName("user", userName), "id"),
+					resource.TestCheckResourceAttrSet(resName("user", userName), "username"),
+
+					func(s *terraform.State) error {
+						return nil
+					},
+
+					// check user values are correct
+					resource.TestCheckResourceAttr(resName("user", userName), "username", userName),
+					resource.TestCheckResourceAttr(resName("user", userName), "roles.#", "2"),
+
+					// check database values are set
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "id"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "name"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "owner"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "compatibility"),
+					resource.TestCheckResourceAttrSet(resName("database", dbName), "collation"),
+
+					// check database values are correct
+					resource.TestCheckResourceAttr(resName("database", dbName), "name", dbName),
+					resource.TestCheckResourceAttr(resName("database", dbName), "owner", userName),
 				),
 			},
 		},
diff --git a/stackit/internal/services/sqlserverflexbeta/testdata/instance_template.gompl b/stackit/internal/services/sqlserverflexbeta/testdata/instance_template.gompl
index 84ca19c1..e71f3fa0 100644
--- a/stackit/internal/services/sqlserverflexbeta/testdata/instance_template.gompl
+++ b/stackit/internal/services/sqlserverflexbeta/testdata/instance_template.gompl
@@ -15,8 +15,8 @@ resource "stackitprivatepreview_sqlserverflexbeta_instance" "{{ .TfName }}" {
   }
 {{ if .UseEncryption }}
   encryption = {
-    kek_key_id      = {{ .KekKeyId }}
-    kek_key_ring_id = {{ .KekKeyRingId }}
+    kek_key_id      = "{{ .KekKeyId }}"
+    kek_key_ring_id = "{{ .KekKeyRingId }}"
     kek_key_version = {{ .KekKeyVersion }}
     service_account = "{{ .KekServiceAccount }}"
   }
@@ -49,8 +49,12 @@ resource "stackitprivatepreview_sqlserverflexbeta_database" "{{ $db.Name }}" {
   instance_id   = stackitprivatepreview_sqlserverflexbeta_instance.{{ $tfName }}.instance_id
   name          = "{{ $db.Name }}"
   owner         = "{{ $db.Owner }}"
-  collation     = "Albanian_BIN"
-  compatibility = "160"
+{{ if $db.Collation }}
+  collation     = "{{ $db.Collation }}"
+{{ end }}
+{{ if $db.Compatibility }}
+  compatibility = "{{ $db.Compatibility }}"
+{{ end }}
 }
 {{ end }}
 {{ end }}