How Lago works

From signup to revenue, one billing system of record

Q: Do I need a CRM to use Lago?

No. A self-serve product can create customers from its own signup flow with one API call. A CRM matters for sales-led deals: the Salesforce package can create customers and assign plans from Salesforce, and Lago Quotes can turn a signed order form into a subscription. HubSpot receives customers, subscriptions and invoices from Lago, in one direction.

Q: Can I keep Stripe as my payment processor?

Yes. Lago builds and finalizes the invoice, and Stripe collects the payment. Lago can create the matching Stripe customer when it creates the customer, and the payment status comes back to Lago by webhook. Adyen and GoCardless are the other official payment integrations.

Q: Who calculates tax on Lago invoices?

Your tax provider, if you connect one. With Anrok or Avalara, Lago sends draft invoices for an estimate and records the final transaction when the invoice is finalized, and the provider's result overrides the tax rates set in Lago. Without a provider, Lago applies the tax rates you configure on the billing entity, customer, plan or charge.

Q: Where does revenue recognition happen?

Usually in your ERP, from the invoices, credit notes and payments Lago syncs to NetSuite or Xero. Lago also has its own revenue recognition, in private beta, which builds recognized and deferred revenue, a revenue waterfall and journal entries from billing data.

Q: Can self-serve and enterprise customers live in the same system?

Yes. Both become a customer with a subscription in Lago. Enterprise deals add what the contract says: plan overrides, minimum commitments, prepaid credits and a quote. Invoicing, payments, accounting sync and reporting then treat every customer the same way.

Q: Does Lago replace my CRM, processor or ERP?

No. Lago is the billing system of record: customers' billing data, subscriptions, usage, invoices and credit notes. Your CRM keeps the pipeline, your processor moves the money and your ERP keeps the general ledger. Most of these connectors are premium add-ons; a custom integration path covers the rest.

Follow one customer through signup, contract, usage, invoice, payment, accounting and reporting, and see which tool does each job.

Connect the tools you already run

SalesforceCRM
HubSpotCRM
AnrokTax
AvalaraTax
NetSuiteAccounting
XeroAccounting
StripePayments
AdyenPayments
GoCardlessPayments
MoneyHashPayments
SnowflakeData
DatabricksData
Amazon S3Data
AirbyteData
SegmentData

One customer, seven steps.From signup to the revenue report.

Follow one customer through the stack, and see which system does each job. The model moves to the step you are reading.

01 / 07
Signup
A customer reaches Lago through one of two doors. Self-serve, your app calls the Lago API at signup. Enterprise, the deal closes in Salesforce or a signed Lago quote is executed. Both end as one customer record.
- Salesforce
- HubSpot
- Lago Quotes
Self-serve, from your app
One API call with your own external_id creates the customer. Lago can create the matching customer at your payment provider in the same call.
Enterprise, from the deal
The Salesforce package can create the customer from an Account and assign a plan when an opportunity closes. Lago Quotes turns a signed order form into a subscription.
Your CRM stays current
HubSpot and Salesforce receive customers, subscriptions and invoices from Lago in real time. HubSpot sync runs one way, from Lago to HubSpot.
1customer record
Whichever door the customer came through
2origins
Your app, or a closed deal
1API call
Customer in Lago and at the payment provider
02 / 07
Contract
A plan is assigned to the customer and becomes a subscription. The plan is shared. The deal terms are set per customer, on top of it.
- Lago
Plan or custom price
Assign a standard plan, or override its subscription fee, charges, minimum spend, taxes, trial and progressive billing thresholds for one customer.
Commitments and prepaid credits
Set a minimum commitment per billing period. Lago adds a true-up fee if spend falls short. Prepaid credits sit in a wallet the invoices draw from.
Same model for every deal
Self-serve signups and negotiated contracts become the same subscription object, so invoicing, usage and reporting treat them alike.
11overridable terms
Per customer, on top of the shared plan
0plan copies
Overrides stay linked to the original plan
1true-up fee
When spend falls short of the commitment
03 / 07
Usage
Your product sends usage events, keyed to the subscription. Lago aggregates them into billable usage as they arrive.
- Kafka
- AWS Kinesis
REST, single or batch
Send one event or batches of up to 100 per request. A batch is validated event by event, then accepted or rejected as a whole.
Streaming sources
Kafka, Amazon Kinesis, S3 and other configured sources feed the same pipeline, for volumes beyond what an HTTP client should carry.
Usage, live
Current usage and wallet balances include events seconds after they land. The ingestion walkthrough follows one event step by step.
100events/batch
Accepted or rejected as a whole
1–3Mevents/sec
Kafka/Redpanda + ClickHouse Cloud load test
< 2s p99
From event to billable
04 / 07
Invoice
At the end of the billing period, or when a progressive billing threshold is crossed, Lago builds the invoice from fees. Discounts, tax and credits are applied in a fixed order.
- Anrok
- Avalara
Coupons, then tax
Coupons come off the subtotal before tax. Tax is calculated on what is left.
Tax from your provider
With Anrok or Avalara connected, Lago sends draft invoices for an estimate and records the final transaction when the invoice is finalized. Without a provider, Lago applies the tax rates you configure.
Credits, after tax
Credit notes are deducted from the subtotal including tax, then prepaid credits from the wallet. What remains is due.
Pre-taxcoupons
Discounts reduce the taxable amount
2tax steps
Estimate on draft, final on finalization
Post-taxcredits
Credit notes, then prepaid credits
05 / 07
Payment
A finalized invoice is sent to the customer's payment provider for collection. The provider reports the payment status back to Lago, and the invoice is marked paid or failed.
- Stripe
- Adyen
- GoCardless
- MoneyHashCommunity
Your processor, not ours
Stripe, Adyen and GoCardless are official integrations. Community connectors and a custom integration path cover other processors. Each customer is linked to one provider connection.
Status comes back by webhook
The provider notifies Lago when a payment succeeds, fails or needs authentication. Lago updates the invoice and sends its own webhook to your app.
Failures have a path
Retry collection on one invoice or in bulk. Dunning campaigns group overdue invoices into a payment request and retry on a schedule you set.
3official providers
Plus community and custom connectors
1payment request
Per currency, for all overdue invoices
0processor lock-in
Pricing and invoices live in Lago, not the processor
06 / 07
Accounting
Invoices, credit notes and payments are written to your ERP as they happen. The general ledger stays in the ERP. Lago is the source of the billing entries.
- NetSuite
- Xero
NetSuite
Customers, invoices, credit notes and payments sync from Lago. Credit notes become credit memos applied to the original invoice.
Xero
Customers and invoices sync from Lago, with credit notes and payments as options. Connect several Xero organizations if you run more than one.
Mapped, not retyped
Plans, charges, taxes and coupons map to your items and accounts once. Every invoice line then lands on the right account.
4object types
Customers, invoices, credit notes, payments
1direction
Lago writes to the ERP
Autocredit memos
Applied to the original invoice in NetSuite
07 / 07
Report
Billing data feeds three places: revenue analytics in Lago, revenue recognition, and your own warehouse and systems.
- Snowflake
- Databricks
- Amazon S3
Revenue analytics
MRR, revenue streams, usage and cash collection, computed from the invoices Lago issued. The numbers refresh once a day.
Revenue recognition, private beta
Recognized and deferred revenue, a revenue waterfall and journal entries, built from invoices, usage and credit notes.
Your warehouse and systems
The Data Pipeline syncs billing tables to Snowflake, Databricks, S3 and other destinations. Webhooks push every billing event to your app.
Dailyrefresh
Revenue analytics
15min
Fastest Data Pipeline sync
10webhook endpoints
Signed with HMAC or JWT

Billing in the middle, everything else connected

One source of truth for billing

Customers, subscriptions, usage, invoices and credit notes live in Lago. The CRM, processor and ERP read the same records.

Payment-processor agnostic

Pricing and invoices stay in Lago. Stripe, Adyen, GoCardless or another processor collects the payment.

Open source and self-hostable

Run Lago in your own cloud or use Lago Cloud. The billing logic is code you can read.

One call connects the stack

Create the customer from your app. Lago links it to your payment provider and your ERP in the same request.

Create a customer

Payment providers

Accounting integrations

2 "customer": {

3 "external_id": "cus_8832",

4 "name": "Acme Inc",

5 "currency": "USD",

6 "billing_configuration": {

7 "payment_provider": "stripe",

8 "payment_provider_code": "stripe-us"

9 },

10 "integration_customers": [

11 {

12 "type": "netsuite",

13 "integration_code": "netsuite-us",

14 "subsidiary_id": "2"

15 }

16 ]

17 }

18}

Create a customer from your signup flow:

curl -s -X POST "$LAGO_API_URL/api/v1/customers" -H "Authorization: Bearer $LAGO_API_KEY" -H "Content-Type: application/json" -d '{"customer":{"external_id":"cus_8832","name":"Acme Inc","currency":"USD","billing_configuration":{"payment_provider":"stripe","payment_provider_code":"stripe-us","sync_with_provider":true},"integration_customers":[{"integration_type":"netsuite","integration_code":"netsuite-us","sync_with_provider":true,"subsidiary_id":"2"}]}}'

One customer in Lago, linked to its Stripe customer for payments and its NetSuite customer for accounting.

{
  "customer": {
    "external_id": "cus_8832",
    "name": "Acme Inc",
    "currency": "USD",
    "billing_configuration": {
      "payment_provider": "stripe",
      "payment_provider_code": "stripe-us"
    },
    "integration_customers": [
      {
        "type": "netsuite",
        "integration_code": "netsuite-us",
        "subsidiary_id": "2"
      }
    ]
  }
}

Who does what

Lago is the billing system of record. Your CRM, processor and ERP keep doing what they are good at.

Customer creation: System of recordYour app for self-serve signups. Your CRM for sales-led deals.; Lago's roleKeeps the billing customer under your external_id, and can create it at the payment provider and in the ERP.
Contract: System of recordYour CRM for the deal. Lago Quotes when the quote is built in Lago.; Lago's roleTurns the terms into a subscription: plan, overrides, minimum commitment, prepaid credits.
Metering: System of recordLago; Lago's roleIngests usage events and aggregates them per subscription in real time.
Tax: System of recordAnrok or Avalara, which are built for tax compliance. Lago tax rates when no provider is connected.; Lago's roleSends draft and final invoices for calculation and applies the result.
Invoicing: System of recordLago; Lago's roleBuilds, finalizes and numbers invoices and credit notes, with coupons, tax and credits applied.
Payment: System of recordStripe, Adyen, GoCardless or another processor, which move the money.; Lago's roleRequests collection, tracks the status, and runs retries and dunning.
Accounting: System of recordNetSuite or Xero, which keep the general ledger.; Lago's roleSyncs customers, invoices, credit notes and payments as they happen.
Revenue recognition: System of recordYour ERP, from the synced billing documents.; Lago's roleLago's own revenue recognition is in private beta: recognized and deferred revenue from billing data.
Analytics: System of recordYour warehouse for company-wide reporting.; Lago's roleRevenue analytics in Lago, and billing tables synced to Snowflake, Databricks, S3 and more.

	System of record	Lago's role
Customer creation	Your app for self-serve signups. Your CRM for sales-led deals.	Keeps the billing customer under your external_id, and can create it at the payment provider and in the ERP.
Contract	Your CRM for the deal. Lago Quotes when the quote is built in Lago.	Turns the terms into a subscription: plan, overrides, minimum commitment, prepaid credits.
Metering	Lago	Ingests usage events and aggregates them per subscription in real time.
Tax	Anrok or Avalara, which are built for tax compliance. Lago tax rates when no provider is connected.	Sends draft and final invoices for calculation and applies the result.
Invoicing	Lago	Builds, finalizes and numbers invoices and credit notes, with coupons, tax and credits applied.
Payment	Stripe, Adyen, GoCardless or another processor, which move the money.	Requests collection, tracks the status, and runs retries and dunning.
Accounting	NetSuite or Xero, which keep the general ledger.	Syncs customers, invoices, credit notes and payments as they happen.
Revenue recognition	Your ERP, from the synced billing documents.	Lago's own revenue recognition is in private beta: recognized and deferred revenue from billing data.
Analytics	Your warehouse for company-wide reporting.	Revenue analytics in Lago, and billing tables synced to Snowflake, Databricks, S3 and more.

How Lago works FAQ

Do I need a CRM to use Lago?

No. A self-serve product can create customers from its own signup flow with one API call. A CRM matters for sales-led deals: the Salesforce package can create customers and assign plans from Salesforce, and Lago Quotes can turn a signed order form into a subscription. HubSpot receives customers, subscriptions and invoices from Lago, in one direction.

Can I keep Stripe as my payment processor?

Yes. Lago builds and finalizes the invoice, and Stripe collects the payment. Lago can create the matching Stripe customer when it creates the customer, and the payment status comes back to Lago by webhook. Adyen and GoCardless are the other official payment integrations.

Who calculates tax on Lago invoices?

Your tax provider, if you connect one. With Anrok or Avalara, Lago sends draft invoices for an estimate and records the final transaction when the invoice is finalized, and the provider's result overrides the tax rates set in Lago. Without a provider, Lago applies the tax rates you configure on the billing entity, customer, plan or charge.

Where does revenue recognition happen?

Usually in your ERP, from the invoices, credit notes and payments Lago syncs to NetSuite or Xero. Lago also has its own revenue recognition, in private beta, which builds recognized and deferred revenue, a revenue waterfall and journal entries from billing data.

Can self-serve and enterprise customers live in the same system?

Yes. Both become a customer with a subscription in Lago. Enterprise deals add what the contract says: plan overrides, minimum commitments, prepaid credits and a quote. Invoicing, payments, accounting sync and reporting then treat every customer the same way.

Does Lago replace my CRM, processor or ERP?

No. Lago is the billing system of record: customers' billing data, subscriptions, usage, invoices and credit notes. Your CRM keeps the pipeline, your processor moves the money and your ERP keeps the general ledger. Most of these connectors are premium add-ons; a custom integration path covers the rest.

From signup to revenue, one billing system of record

Connect the tools you already run

One customer, seven steps.From signup to the revenue report.

Contract

Usage

Invoice

Payment

Accounting

Report

Billing in the middle, everything else connected

One source of truth for billing

Payment-processor agnostic

Open source and self-hostable

One call connects the stack

Who does what

How Lago works FAQ

Do I need a CRM to use Lago?

Can I keep Stripe as my payment processor?

Who calculates tax on Lago invoices?

Where does revenue recognition happen?

Can self-serve and enterprise customers live in the same system?

Does Lago replace my CRM, processor or ERP?

Related reading

Integrations

Quotes & Order Forms

Revenue recognition

Revenue analytics

Integrations

Quotes & Order Forms

Revenue recognition

Revenue analytics

Put billing at the center of your stack.

From signup to revenue, one billing system of record

Connect the tools you already run

Signup

Contract

Usage

Invoice

Payment

Accounting

Report

Billing in the middle, everything else connected

One source of truth for billing

Payment-processor agnostic

Open source and self-hostable

One call connects the stack

Who does what

How Lago works FAQ

Do I need a CRM to use Lago?

Can I keep Stripe as my payment processor?

Who calculates tax on Lago invoices?

Where does revenue recognition happen?

Can self-serve and enterprise customers live in the same system?

Does Lago replace my CRM, processor or ERP?

Related reading

Integrations

Quotes & Order Forms

Revenue recognition

Revenue analytics

Integrations

Quotes & Order Forms

Revenue recognition

Revenue analytics

Put billing at the center of your stack.