---
title: Enterprise billing, from signed contract to recognized revenue
description: How Lago bills complex enterprise contracts and pricing, from quote to cash. Quotes and amendments, ramped commitments, usage overages, multiple billing entities and tax, ERP and CRM sync, revenue recognition and dunning.
canonical: https://getlago.com/solutions/industries/enterprise
---

# Enterprise billing, from signed contract to recognized revenue

Lago turns negotiated deals into accurate invoices. Sales quotes from the plan catalog, versions every negotiation round and approves it into an order form. Overrides, commitments, prepaid credits and usage charges then bill automatically across billing entities, sync to the ERP and CRM, and flow into revenue recognition. Lago is open source and runs in Lago Cloud or self-hosted.

## A managed quote-to-finance path

Consider a buyer who already uses Adyen for collection and NetSuite for accounting. **Lago Cloud is the managed billing service**; this example does not require or favor either vendor. Sales builds a quote with a subscription fee, prepaid credits and negotiated usage rates from the existing plan catalog. Lago freezes the approved version into an order form; the buyer signs in the seller's existing signature workflow. Finance attaches or records that signed document in Lago, marks the order signed, and executes it. Execution provisions the subscription, price overrides and wallets before billing starts. Lago then rates usage and issues invoices; the buyer's processor handles eligible payments; the Premium NetSuite integration sends invoices, credit memos and payments to the mapped subsidiary. See [quotes and order forms](https://getlago.com/platform/quotes), [payment-provider options](https://getlago.com/docs/guide/payments/payment-providers) and [NetSuite integration](https://getlago.com/docs/integrations/accounting/netsuite).

This workflow needs a configured payment method and a tested signature handoff. Lago does not supply electronic signature or a self-service subscription signup checkout. Quotes and NetSuite are Premium add-ons available on request, and NetSuite item/subsidiary mapping must be configured before invoices sync. Finance should test the first signed deal through an invoice, payment failure and NetSuite reconciliation, and confirm those add-ons and the Cloud price in its quote.

## One contract, end to end

An illustrative three-year contract between a seller with a US and an EU billing entity and an enterprise buyer:

- **Products:** a platform license at $240,000 a year billed in advance, routing API calls with 50M calls a month included then $0.40 per 1,000, and telematics devices at €11 per device per month billed by the EU entity in euros.
- **Ramped commitment:** minimum commitments of $600,000, $900,000 and $1,200,000. Lago has no separate ramp object: each contract year is a yearly subscription with its own minimum commitment override, scheduled to start on its anniversary. If fees fall short at year end, Lago invoices the gap as a minimum commitment true-up fee, in arrears.
- **Usage overages:** graduated ranges bill the calls above the included volume monthly in arrears. In September, 88M calls bill as 50M included at $0.00 and 38M above the allowance at $0.40 per 1,000: $15,200.00, plus $1,349.00 of New York sales tax. Overage counts toward the commitment.
- **Entities and tax:** each subscription bills from one billing entity, in its own currency and numbering. Avalara or Anrok calculate US sales tax. Lago's EU tax management validates VAT numbers against VIES and applies reverse charge on cross-border B2B invoices.
- **Revenue:** the license is recognized daily over the year. Invoices, credit notes and payments sync to NetSuite, each billing entity mapped to a subsidiary.

## The enterprise contract lifecycle

### 1. Quote and negotiate

Sales builds each quote from the plan catalog finance already bills on: a plan, coupons and prepaid credits. Negotiated terms are saved as overrides, so only what differs from the plan is stored, such as a custom subscription fee, a usage rate or a minimum commitment. Each negotiation round is a versioned revision, v1, v2, v3. Voided versions stay in the history with exactly what the customer saw. Approval locks the version and generates the order form. Once it is marked as signed, the order executes into billing.

- [Catalog-based quotes](https://getlago.com/docs/guide/quotes/create-a-quote): start from a live plan, not a spreadsheet.
- [Overrides saved as changes](https://getlago.com/docs/guide/quotes/quote-editor): only what differs from the plan is stored.
- [Versioned revisions](https://getlago.com/docs/guide/quotes/overview): every round is kept with what the customer saw.
- [Order forms](https://getlago.com/docs/guide/quotes/order-forms): approval freezes a version into a PDF. Signature happens in the merchant's own workflow, then the order form is marked as signed and the order executes into the subscription.

### 2. Model the contract

Executing the order turns the signed terms into a subscription. Nothing is re-keyed between sales and finance. The quote's overrides carry over as they were approved: custom prices, fixed and usage charges, a minimum commitment and progressive billing thresholds. Coupons are applied and each credit block creates a wallet, so the first invoice can already draw on it. Each subscription bills from one billing entity, with its own currency, numbering and tax settings. A multi-year ramp is one yearly subscription per contract year, each with its own commitment.

- [Plan overrides](https://getlago.com/docs/guide/subscriptions/assign-plan): custom prices, charges, minimum commitments and progressive billing thresholds per subscription.
- [Commitments and spending minimums](https://getlago.com/docs/guide/plans/commitment): a plan-level minimum commitment and per-charge spending minimums, trued up in arrears.
- [Prepaid credits](https://getlago.com/docs/guide/wallet-and-prepaid-credits/overview): wallets applied to subscription, usage and commitment fees.
- [Multi-entity billing](https://getlago.com/docs/guide/billing-entities): each subscription bills from its own legal entity.

### 3. Amend mid-term

Contracts change before they renew. An amendment quote prices an upgrade, downgrade or repricing on a live subscription, with the same versions, approval and order form as a new deal. Executing it updates the subscription with the quoted plan and overrides. Upgrades apply immediately and are prorated by the day. On a plan paid in advance, Lago issues a credit note for the unused days of the former plan. Downgrades take effect at the end of the current period, so the customer keeps what they paid for. Any finalized invoice can be corrected with a credit note.

- [Amendment quotes](https://getlago.com/docs/guide/quotes/create-a-quote): quote an upgrade, downgrade or repricing on a live subscription. An amendment covers one plan on one subscription.
- [Upgrades and downgrades](https://getlago.com/docs/guide/subscriptions/upgrades-downgrades): upgrades apply immediately, downgrades at the end of the current period.
- [Credit notes](https://getlago.com/docs/guide/invoicing/credit-notes/overview): correct any finalized invoice. Upgrades can issue one automatically.

## Meter, bill and tax

- [Progressive billing](https://getlago.com/docs/guide/plans/progressive-billing): invoice usage as lifetime usage crosses thresholds, not only at period end.
- [Tax compliance](https://getlago.com/docs/guide/invoicing/invoicing-settings/taxes): sales tax and VAT through Avalara, Anrok or Lago's EU tax management.
- [Invoice previews](https://getlago.com/docs/guide/invoicing/previews): preview a deal or the next invoice of a live subscription, with charges, taxes and discounts applied.
- [Multi-currency](https://getlago.com/docs/guide/customers/customer-management#currency-and-billing-entity): one customer, several currencies and billing entities, without duplicate customer records.
- [Revenue recognition and finance reports](https://getlago.com/platform/revenue-recognition) (premium): recognized and deferred revenue, waterfalls, statements and journal entries.

## Sync billing data to your CRM and ERP

- [Salesforce CPQ and CRM](https://getlago.com/docs/integrations/crm/salesforce-crm): two-way. Customers, subscriptions, invoices and credit notes reach Salesforce in real time, plans and add-ons on a schedule. An approved CPQ quote can create the subscription in Lago.
- [HubSpot](https://getlago.com/docs/integrations/crm/hubspot): one-way, in real time. Customers land on Contacts or Companies, with subscriptions and invoices as custom objects. Requires Sales Hub Enterprise.
- [NetSuite](https://getlago.com/docs/integrations/accounting/netsuite): one-way, in real time. Customers, invoices, credit memos and payments, one line per fee, tax reconciled to the cent, each billing entity on its own subsidiary. A repeated send with the same Lago ID is skipped as a duplicate.
- [Xero](https://getlago.com/docs/integrations/accounting/xero): one-way, in real time. Customers, invoices, credit notes and payments on the Xero items and accounts you map.

## Built for enterprise requirements

- **Auditable to the last line.** Every invoice traces back to the events, prices and overrides behind it. [Audit logs](https://getlago.com/docs/guide/security/audit-logs) record who changed what, from the dashboard, the API or the system. [Security logs](https://getlago.com/docs/guide/security/security-logs) cover team, authentication and API key changes.
- **Access control.** [Role-based access control](https://getlago.com/docs/guide/security/rbac) and [single sign-on](https://getlago.com/docs/guide/security/sso).
- **Tame complex pricing structures.** Commitments, negotiated overrides, tiers, credits, currencies and legal entities in one billing system.
- **Deploy where your data must live.** Lago Cloud is SOC 2 Type II certified. Self-host in your VPC, on-premise or air-gapped.
- **Extend it to your own systems.** The API, webhooks and data pipeline connect billing to internal tools, warehouses and payment providers.

## From invoice to cash, closed in your books

- **Recognize revenue and close the books.** Each fee is recognized day by day across its service period, under ASC 606 and IFRS 15. [Revenue recognition](https://getlago.com/docs/guide/revenue-recognition/overview) is a premium feature.
- **Reconcile and audit.** Invoices, credit notes and payments land once in the ledger and match to the cent.
- **Collect overdue invoices.** [Dunning campaigns](https://getlago.com/docs/guide/dunning/automatic-dunning) retry payment through the payment provider, or email a payment request, on the thresholds, attempts and delays you set. The [Dunning Agent](https://getlago.com/docs/guide/ai-agents/dunning-agent), in beta, reads twelve months of payment history, then waits, retries a declined card, drafts a reminder for the net amount still owed, or escalates to a person.

## Boundaries

- Quotes, commitments, multiple billing entities, progressive billing, the Avalara, Anrok, NetSuite, Xero, Salesforce and HubSpot integrations, RBAC, audit logs, revenue recognition and dunning are premium features or add-ons.
- A quote holds one pricing block. A multi-year ramp is modeled as one subscription per contract year, not as a single quote.
- Lago does not provide e-signature and is not a payment processor.
- A single subscription bills from one billing entity.

## Customers

[PayPal chose Lago](https://getlago.com/blog/paypal-x-lago) to offer billing to its merchants, self-hosted, with multi-currency, multi-entity billing across 200+ markets.

## Enterprise billing FAQ

### Can Lago bill a multi-year contract with a ramped commitment?

Yes. Each contract year is a yearly subscription with its own minimum commitment, scheduled to start on its anniversary. Usage and fixed fees count toward the commitment. If they fall short at year end, Lago invoices the difference as a true-up fee.

### How does a signed quote become billing?

Sales builds the quote from your plan catalog, and negotiated changes are saved as overrides. Every round is a new version. Approval generates the order form, and once it is marked as signed, executing the order creates or updates the subscription with its overrides, coupons and prepaid credits.

### Can one customer be billed from several legal entities and currencies?

Yes. A customer's currency and billing entity are defaults, not constraints. Each subscription, coupon, one-off invoice or wallet can use a different currency and entity, and its invoices are issued by that entity, with its own numbering, address and tax settings.

### How does Lago handle sales tax and VAT?

Lago integrates with Avalara and Anrok to calculate US sales tax and VAT on each invoice. Lago's own EU tax management validates VAT numbers against VIES and applies reverse charge to cross-border B2B invoices.

### What syncs to our ERP and CRM?

NetSuite and Xero receive customers, invoices, credit notes and payments in real time. In NetSuite, each billing entity maps to a subsidiary and tax is reconciled to the cent. Salesforce receives customers, subscriptions, invoices and credit notes, and an approved CPQ quote can create the subscription in Lago. HubSpot receives customers, subscriptions and invoices, one way.

### Does Lago recognize revenue?

Yes. Revenue recognition turns invoices, usage and credit notes into recognized and deferred revenue under ASC 606 and IFRS 15, day by day across each service period. It reports recognized revenue, deferred revenue, the revenue waterfall, statements and journal entries. It is a premium feature.

### How does Lago collect overdue invoices?

Dunning campaigns retry the payment through your payment provider, or email a payment request, on the thresholds, attempts and delays you set per billing entity or customer. The Dunning Agent, in beta, reads twelve months of each customer's payment history first, then waits, retries a declined card, drafts a reminder for the net amount still owed, or hands the account to a person.

### Where can Lago run, and how is it audited?

Use Lago Cloud, which is SOC 2 Type II certified, or self-host in your VPC, on-premise or air-gapped. The billing engine is open source, so security teams can review the code, and audit logs record who changed what, from the dashboard or the API.

### How do we migrate from a homegrown billing system?

Move one pricing model or customer segment at a time through the API, run invoices in parallel against your current system, then cut over once they match. The rest of your billing keeps running while you migrate.

## Next step

- [Book a demo](https://getlago.com/book-a-demo)
- [Deploy on-premise](https://getlago.com/solutions/use-cases/self-hosted)
- [Quotes and order forms](https://getlago.com/platform/quotes)
- [Revenue recognition](https://getlago.com/platform/revenue-recognition)