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ALPHA FEATURE 🚧Revenue recognition is in alpha and released gradually to a limited set of accounts. It is also a premium feature. Please contact us to request access for your account. See the overview for what alpha means in practice.
Once revenue recognition is enabled, Lago starts producing recognized and deferred revenue from your existing billing data. There’s nothing to calculate and no accounting rules to set up. Lago decides the recognition method and applies it automatically.
1

Request access

Alpha access is granted account by account. Contact us to have it turned on for your organization.
2

Confirm your billing data is in good shape

Recognition is only as accurate as the data behind it. Before relying on the figures, make sure subscriptions, service periods, taxes, and commitments are set the way you bill. See Prepare your billing data.
3

Review your first reporting period

Open the reports at the end of your first month and reconcile recognized plus deferred revenue against what you invoiced. See Review your first reporting period.

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What Lago controls, and what you control

Recognition logic is decided by Lago and applied automatically. You influence the inputs through your normal billing setup, not through any recognition settings.
There are no allocation rules, recognition methods, or account mappings for you to configure. Revenue recognition reads your billing data and applies Lago’s logic for you.

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A note on history

Revenue for periods before you enable the feature isn’t reconstructed day by day. Recognition begins from your current billing state forward. Plan your first reporting period accordingly.