Question 1

How does Lago generate invoices?

Accepted Answer

Lago calculates charges from a customer ' s plan and billable metrics, then automatically creates and sends an invoice once the billing period closes. Invoices apply the right taxes, include usage and subscription line items together, and can go out as PDF or as XML for e-invoicing compliance, without manual assembly.

Question 2

Can Lago handle hybrid pricing on one invoice?

Accepted Answer

Yes. A single invoice can combine a flat subscription fee, usage-based charges, prorations, and credit or coupon deductions on the same line-item list. This is what lets a company bill a base plan and metered overage together instead of running separate billing processes for each.

Question 3

How does Lago calculate tax on invoices?

Accepted Answer

Lago applies tax rates automatically at invoicing time and connects to dedicated tax engines like Avalara and Anrok for jurisdiction-specific calculation. A team can also set manual tax rates directly on a plan or customer when a full tax integration isn ' t needed yet.

Question 4

What happens if a customer's payment fails?

Accepted Answer

A failed payment triggers a dunning campaign: Lago retries the charge on a defined delay and attempt count, and sends the customer an email with a payment link if a connected payment processor is in use. Reaching the overdue balance threshold on a campaign starts this process automatically, and a successful retry updates the invoice status without manual follow-up.

Question 5

Can an invoice be corrected after it's issued?

Accepted Answer

Yes, through voiding rather than editing. Voiding an invoice keeps it in the record for audit purposes, zeroes its value, and marks it as not payable, and a credit note can be issued alongside it to refund the customer or hold the balance as credit. The voided invoice can then be regenerated with corrected line items while staying linked to the original for traceability.

Question 6

Does Lago support credit notes and refunds?

Accepted Answer

Yes. Credit notes can be issued on their own or as part of voiding an invoice, and the resulting balance can be refunded to the customer ' s original payment method or kept as a credit against future invoices. This covers the common corrections teams need: overcharges, cancellations, and partial refunds.

Question 7

Which payment providers does Lago connect to?

Accepted Answer

Lago connects to major payment processors to collect payment automatically once an invoice is generated, recording success or failure back onto the invoice without a manual reconciliation step. When no processor is connected, Lago still tracks payment status manually and can send reminder emails through dunning.

Question 8

Is billing and invoicing available for both usage-based and subscription models?

Accepted Answer

Yes. The same invoicing engine handles pure subscriptions, pure usage-based billing, and hybrid plans that mix the two, plus prepaid credits and usage allowances. A company doesn ' t need a separate tool depending on which pricing model a given plan uses.

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