> ## Documentation Index
> Fetch the complete documentation index at: https://getlago.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Enable revenue recognition

> Turn on revenue recognition for your account.

<Info>
  **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](mailto:hello@getlago.com)** to request access for your account. See the [overview](/docs/guide/revenue-recognition/overview) for what alpha means in practice.
</Info>

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.

<Steps>
  <Step title="Request access">
    Alpha access is granted account by account. [Contact us](mailto:hello@getlago.com) to have it turned on for your organization.
  </Step>

  <Step title="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](/docs/guide/revenue-recognition/get-started/prepare-billing-data).
  </Step>

  <Step title="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](/docs/guide/revenue-recognition/get-started/review-first-period).
  </Step>
</Steps>

## 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.

| Decided by Lago (automatic)                       | Set by you (through normal billing config)                   |
| ------------------------------------------------- | ------------------------------------------------------------ |
| Recognition method and daily allocation           | Whether a plan or charge is billed in advance or in arrears  |
| The chart of accounts and journal entries         | Billing time and interval                                    |
| How taxes, credit notes, and disputes are treated | Plan and charge amounts, minimum commitments, coupons, taxes |
| Monthly book-close                                | Your organization's timezone                                 |

<Info>
  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.
</Info>

## 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.