Why you received an unexpected invoice when a subscription was terminated

When a subscription is terminated in Lago, a termination invoice is generated for any usage or fees that hadn't yet been billed up to the termination date. This is separate from any regular period invoices and can appear as an unexpected charge if the customer or account team wasn't anticipating it.

What the termination invoice covers

For pay-in-arrears subscriptions, the termination invoice covers any subscription or usage fees accrued between the last billing date and the termination date. For pay-in-advance subscriptions, a credit note may be issued instead for any unused portion of the already-billed period, depending on how the plan's on_termination_credit_note setting is configured.

Why two invoices can arrive on the same day

If a termination is processed on the same date as the subscription's regular billing cycle, both the period-end invoice and the termination invoice are generated independently. Lago's billing and termination jobs run on an hourly schedule, and both events are treated as separate billing triggers, producing two separate invoice documents.

Configuration options

Termination invoicing behavior is controlled at the plan level. Setting on_termination_invoice to skip will suppress the termination invoice entirely. For pay-in-advance plans, on_termination_credit_note controls whether the unused portion is credited, refunded, or offset against a future invoice.

What to tell the customer

If the invoice is unexpected, confirm whether a subscription was recently terminated and whether the invoice amount corresponds to unbilled usage or fees up to the termination date. If the dual invoicing was unintentional, consider adjusting plan settings to control termination behavior going forward.

This article reflects guidance drawn from customer case resolutions. It is not officially supported documentation and may not apply to all situations.