# 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](#key-benefits) section.

To schedule a future-value-dated transaction, set a future date in the `payment_datetime` field of the  [Post payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-payments) or [Post multi-leg payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-multileg-payments) endpoint.  For more information, refer to the [Transaction process](#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](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-confirm-payments) or the [Request bulk settlement](https://developers.pismo.io/pismo-docs/reference/post-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](https://developers.pismo.io/pismo-docs/docs/posting-transactions-on-holidays#future-business-dated-transactions)  section in *Posting transactions on holidays*. For how to configure holidays, refer to  [Calendar and holidays in transaction banking](https://developers.pismo.io/pismo-docs/docs/calendars-and-holidays-in-transaction-banking). |
| Custom rejection rules | If `reject_future_value_dating` is set to `true` and the `payment_datetime` places the payment on a future value date, the Pismo platform rejects the payment.                                                                                                                                                                                                                                                                                                                                     |