> ## Documentation Index
> Fetch the complete documentation index at: https://docs.getlago.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Grace period
> Configure a buffer between invoice generation and finalization to review invoices.
**PREMIUM FEATURE** ✨
This feature is only available to users with a premium license. Please
**[contact us](mailto:hello@getlago.com)** to get access to Lago Cloud and Lago
Self-Hosted Premium.
A grace period is the number of days during which invoices remain in `draft` status, allowing you to review and modify them before they are finalized and sent for payment collection.
In the illustration below, the billing period spans one month, followed by a three-day grace period.
## Define a grace period at billing entity level[](#define-a-grace-period-at-organization-level "Direct link to heading")
The grace period set at the billing entity level applies to all customers linked to this entity by default.
To set a grace period from the Lago Dashboard:
1. Access the **"Settings"** section via the side menu;
2. Open the **Billing entity** > **"Invoicing settings"** section;
3. Click **"Edit"** in the **"Grace period"** section;
4. Enter the number of days associated with the grace period; and
5. Click **"Edit grace period"** to confirm.
If you shorten the organization's grace period, some invoices in `draft`
status may be automatically `finalized`. For instance, if the initial grace
period was five days, but then three days into the grace period you decide to
reduce it to two days, then all `draft` invoices will automatically switch to
`finalized`.
You can also modify the entity's grace period at any time through [the API](/api-reference/billing-entities/update).
```bash Add a grace period on the organization {28} theme={"dark"}
LAGO_URL="https://api.getlago.com"
API_KEY="__YOUR_API_KEY__"
curl --location --request PUT "$LAGO_URL/api/v1/billing_entities/{code}" \
--header "Authorization: Bearer $API_KEY" \
--header 'Content-Type: application/json' \
--data-raw '{
"organization": {
"invoice_grace_period": 3
}
}'
```
## Define a grace period at customer level[](#define-a-grace-period-at-customer-level "Direct link to heading")
To define a grace period at customer level through the user interface:
1. Go to the **Customers** section in the side menu;
2. Select a customer;
3. Open the **Settings** tab in the customer view;
4. Click **Add grace period** in the **Grace period** section;
5. Enter the number of grace period days; and
6. Click **Add grace period** to confirm.
If you shorten the customer's grace period, some invoices in `draft` status
may be automatically `finalized`. For instance, if the initial grace period
was five days, but then three days into the grace period you decide to reduce
it to two days, then all `draft` invoices will automatically switch to
`finalized`.
You can also modify the customer's grace period at any time through the Dashboard or [the API](/api-reference/customers/create).
```bash Add a grace period on the customer {28} theme={"dark"}
LAGO_URL="https://api.getlago.com"
API_KEY="__YOUR_API_KEY__"
curl --location --request POST "$LAGO_URL/api/v1/customers" \
--header "Authorization: Bearer $API_KEY" \
--header 'Content-Type: application/json' \
--data-raw '{
"customer": {
"external_id": "5eb02857-a71e-4ea2-bcf9-57d3a41bc6ba",
"address_line1": "5230 Penfield Ave",
"address_line2": "",
"city": "Woodland Hills",
"country": "US",
"currency": "EUR",
"email": "dinesh@piedpiper.test",
"legal_name": "Coleman-Blair",
"legal_number": "49-008-2965",
"tax_identification_number": "EU123456789",
"logo_url": "http://hooli.com/logo.png",
"name": "Gavin Belson",
"phone": "1-171-883-3711 x245",
"state": "CA",
"timezone": "Europe/Paris",
"url": "http://hooli.com",
"zipcode": "91364",
"tax_codes": []
"billing_configuration": {
"invoice_grace_period": 3,
"payment_provider": "stripe",
"provider_customer_id": "cus_12345",
"sync": true,
"sync_with_provider": true,
"document_locale": "fr",
},
"metadata": [
{
"key": "Name",
"value": "John",
"display_in_invoice": true
}
]
}
}'
```
The customer-specific grace period overrides the billing entity’s default grace period. It only applies to the customer it is configured for.
## Application scope and possible actions[](#application-scope-and-possible-actions "Direct link to heading")
The grace period applies exclusively to **subscription** invoices. It does not apply to invoices related to add-ons or credit purchases.
The creation of a `draft` invoice triggers the `invoice.drafted`
[webhook](/api-reference/webhooks/messages).
While an invoice is in draft status, you can:
* **Add usage records** by sending events with a valid timestamp within the billing period
* **Edit specific fees** (adjusting total amount or unit count)
* **Apply coupons** to the customer’s account
* **Add credits** to the customer’s wallet or credit note wallet
Please follow this page to know more about these actions.