Future-value-dated transactions
Future-value-dated transactions, are transactions that are scheduled to occur on a specific future date, meaning funds are only available when that date arrives. This type of transaction is useful for recurring payments, delayed payments, and other scenarios outlined in the Key benefits section.
To schedule a future-value-dated transaction, set a future date in the payment_datetime field of the Post payment or Post multi-leg payment endpoint. For more information, refer to the Transaction process section.
Key benefits
Here are some key benefits of future-value-dated transactions.
| Benefit | Description |
|---|---|
| Cashflow planning | Future-value-dated transactions enable better liquidity planning, ensuring that funds are available when needed. This helps customers manage their cashflow more efficiently. |
| Contractual agreements | For contract-based transactions that require specifying a future payment date, such as financing agreements and leases, you can schedule these transactions for specific future dates as outlined in the contract. |
| Risk reduction | Future-value-dated transactions can mitigate risks associated with currency and interest rate fluctuations by fixing the value date in the future, thus protecting against adverse market volatility. |
Use cases
The following are some possible use cases for future-value-dated transactions.
- Foreign exchange: You can initiate a foreign exchange transaction with a specified future date for clearing. This way, the book balance is adjusted on the future date, while the transaction is recorded immediately.
- Escrow payments: Escrow payments are typically predated. Although Pismo doesn’t manage the conditions for confirming escrow payments, you can schedule the operation with a future value date and confirm it according to your business requirements.
Transaction process
Future-value-dated transactions are a two-stage process: posting and clearing.
Posting
The transaction is first recorded in the system with a future payment date. In this stage, the following balance impacts are observed.
| Balance type | Debit transactions | Credit transactions |
|---|---|---|
| Uncleared funds balance | ✔ | ✔ |
| Ledger balance | ✔ | ✔ |
| Available balance | ✔ | ✘ |
Clearing
When the payment date arrives, the transaction is finalized. The client can confirm the payment through the Confirm payment or the Request bulk settlement endpoint. In this stage, the following balance impacts occur.
| Balance type | Debit transactions | Credit transactions |
|---|---|---|
| Book balance | ✔ | ✔ |
| Available balance | ✘ | ✔ |
| Value-dated balance | ✔ | ✔ |
Future-valued-dated transactions versus scheduled payments
Scheduled payment transactions are planned to occur on a specified future date. These transactions typically involve two steps: initial scheduling and execution on the scheduled date. Unlike future-value-dated payments, the availability of funds is not checked at the time of scheduling, nor are any balances affected. These checks and adjustments only take place on the scheduled date.
Guidelines for future-value-dated transactions
Here are some guidelines to remember when you configure future-value-dated transactions.
| Parameters | Guidelines |
|---|---|
| Configurable days | By default, future-value-dated transactions are allowed for up to 10 days into the future. |
| Balance history events | Balance history events are not sent for future-value-dated transactions. |
| Holidays | By default, future-value-dated transactions can occur on holidays. You can change this by setting deny-value-date to true. For more information about deny_value_date, refer to the future-business-dated transaction section in Posting transactions on holidays. For how to configure holidays, refer to Calendar and holidays in transaction banking. |
Updated 5 days ago