Grace period to adjust invoice usage

Invoice grace periods are a strategic tool that businesses can use to gain flexibility when finalizing billing invoices by allowing adjustments to be made before invoices become uneditable. This window of time, occurring between the end of a billing period and the invoice's finalization, enables companies to account for billing events that were not captured in time or to make adjustments for special circumstances, such as offering a commercial gesture to a customer. For example, an API company might use a grace period to ensure all usage data is accurately ingested and reflected on an invoice, particularly when data transmission might lag in the final hours of the billing cycle. Grace periods are crucial for ensuring accuracy and customer satisfaction, although they should not be confused with payment grace periods, which pertain to the postponement of invoice payments. Tools like Lago allow businesses to define custom grace periods for individual customers, ensuring that invoices are thoroughly reviewed and adjusted before being finalized and sent out.