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A negotiated contract can combine a subscription, metered usage, customer-specific prices, credits, and a minimum commitment. The selection test is the actual invoice the contract will produce, including a below-minimum month and an above-minimum month.

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Example: a monthly commitment

Assume a customer agrees to a **1,000monthlyminimum∗∗formeteredusage.With1,000 monthly minimum** for metered usage. With 800 of eligible usage, Lago adds a 200true−uptoreachtheminimum.With200 true-up to reach the minimum. With 1,300 of eligible usage, it bills $1,300 and adds no true-up. These figures are illustrative, before tax, discounts, or credits. Minimum commitments are calculated on the pre-tax amount before discounts.

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Configure and verify the contract

  1. Translate the agreement into billing terms. Record the billing interval, usage metric, unit price, minimum commitment, prepaid credits, payment terms, and amendment rules. Create a plan and override its terms for this customer where the agreement differs from the standard catalog.
  2. Configure the minimum. Set a minimum commitment on the plan or override it for the customer. Check which charges count toward the minimum and when the true-up appears.
  3. Choose how sales terms enter Lago. You can assign and override a plan directly. If your team uses Quotes & Order Forms, it can turn an approved quote and signed order form into an order that provisions billing. Quotes & Order Forms is available on request; confirm access and the required approval roles before designing around it.
  4. Send representative usage and preview the invoice. Use an isolated test organization, then inspect the Premium invoice preview for the configured subscription. Compare both a below-minimum and above-minimum month with the signed terms. A preview uses configured customer and billing data; it is not an arbitrary mock invoice.
  5. Check the handoff. Verify the finalized invoice, payment method, credit notes if needed, and the Finance workflow. Confirm the accounting integration and its availability before treating the contract as operationally ready.
For a vendor evaluation, ask each provider to reproduce the same contract and explain every invoice line, amendment, approval, and integration step. The work needed to connect your product and finance stack belongs in the comparison alongside software fees.