# Posting transactions on holidays

When posting transactions, all configured calendars, holidays, and parameters are taken into consideration. The transaction types available for posting on holidays include:

* Regular posting
* Back-dated transaction
* Future-dated transaction
* Scheduled payment
* Earmark
* Multi-leg payment
* Bulk payment

For back-dated transactions, you must provide `business_date` and `payment_datetime` fields in [Post payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-payments) with a past date. For future-dated transactions, you can provide `business_date` and `payment_datetime` or specify desired parameter values in the metadata fields of [administrative division](https://developers.pismo.io/pismo-docs/reference/post-v2-admin-division) or [holidays](https://developers.pismo.io/pismo-docs/reference/post-v2-holiday). Note that the parameters set in the holiday or administrative division metadata can affect transaction approval as well as posting dates.

# Parameters

To process dated transactions, you must specify the following parameters in the metadata when creating an administrative division or setting up holidays. Note that the metadata object does not have schema validation, so when there's a typographical error or a field isn't sent, the parameter value defaults to `false`.

| Parameter name               | Data type | Purpose                                                                                                                                                                                                                                      |
| :--------------------------- | :-------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| `defer_transaction`          | boolean   | Indicates if transactions that occur on a holiday are deferred to the next business day. If not specified, defaults to `false` and transactions are not deferred.                                                                            |
| `deny_business_date`         | boolean   | Determines whether transactions with a business date on a holiday are rejected. Defaults to `false`, permitting such transactions if not specified.                                                                                          |
| `deny_value_date`            | boolean   | Specifies whether to reject transactions with `payment_datetime` on a holiday. If not specified, defaults to `false`, allowing such transactions.                                                                                            |
| `instant_clearing`           | boolean   | Determines whether balances are immediately affected when a future business transaction is posted on a holiday. Defaults to `false`, indicating that if left unspecified, such transactions are allowed.                                     |
| `skip_cycle_closing`         | boolean   | Defines whether cycle closing is skipped on non-business days. If not specified, defaults to `false` and cycle closing is executed as usual.                                                                                                 |
| `reject_back_value_dating`   | boolean   | Prevents back‑value‑dated transactions for the target when set to `true`. If the provided `payment_datetime` back-values the transaction, and `reject_back_value_dating` is enabled, the Pismo platform rejects the transaction.             |
| `reject_future_value_dating` | boolean   | Blocks future value‑dated transactions for the target when set to `true`. If the provided `payment_datetime` sets the transaction to a future value and `reject_future_value_dating` is enabled, the Pismo platform rejects the transaction. |

# Future-business-dated transactions

To configure future business dated transactions on holidays, you add the following boolean parameters to the administrative [division](https://developers.pismo.io/pismo-docs/reference/post-division-v2) or [holiday](https://developers.pismo.io/pismo-docs/reference/post-v2-holiday) metadata. By default, these parameters are set to `false`:

* `defer_transaction`
* `deny_business_date`
* `deny_value_date`
* `reject_future_value_dating`

<Callout icon="📘" theme="info">
  **Notes**

  * The settings designated for holidays always supersede those in the administrative division.
  * If you do not specify a value for `reject_future_value_dating`, the Pismo platform treats it as `null`, which is equivalent to `false`.
</Callout>

## Holiday transaction handling

If a transaction occurs on a holiday with defined holiday metadata parameters, **these parameters take precedence over identical ones in the administrative division metadata**. The Pismo platform uses the administrative division metadata for holidays when there is no associated holiday metadata or when the day is not included in the `working_day` array in the [administrative division](https://developers.pismo.io/pismo-docs/reference/post-v2-admin-division).

### Cycle closing

To configure how [cycle closing](https://developers.pismo.io/pismo-docs/docs/managing-grace-period) and transactions respond to holidays and weekends, you must set `skip_cycle_closing` to either `true` or `false` in the metadata field when setting up [administrative divisions](https://developers.pismo.io/pismo-docs/reference/post-v2-admin-division) or [holidays](https://developers.pismo.io/pismo-docs/reference/post-v2-admin-division). This enables the system to determine whether to run a cycle closing or evaluate if a particular transaction is permissible.

## Submitting future-business-dated transactions

There are two methods to submit a future business-dated transaction. One approach is to designate the next business date in the payment request's `business_date` field (in [Post payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-payments)). Another method is to set the following parameters and their corresponding values in the metadata field of [Create holiday](https://developers.pismo.io/pismo-docs/reference/post-v2-holiday). For example:

* `deny_business_date` = `false`
* `defer_transaction` = `true`

With this configuration, any transactions posted on holidays or weekends are automatically deferred to the next  business day.

# Understanding regular clearing

Transactions scheduled for future business dates that undergo regular clearing (as opposed to instant clearing) require confirmation on the settlement date. You can use [Confirm payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-confirm-payments) or [Request bulk settlements](https://developers.pismo.io/pismo-docs/reference/post-bulk-settlement) to confirm these transactions. Running balances and balance history are impacted only after the transaction has been successfully cleared.

## Impacted balances

Credit or debit transactions impact these balances respectively.

| Transaction type    | Impacted balances       |
| ------------------- | ----------------------- |
| Credit transactions | Ledger balance          |
|                     | Uncleared funds balance |
|                     |                         |
| Debit transactions  | Ledger balance          |
|                     | Uncleared funds balance |
|                     | Available balance       |

## Impacted balance history

### Credit and debit transactions

Different process days for credit and debit transactions impact different types of balance.

| Transaction process | Process date                   | Impacted balances       |
| ------------------- | ------------------------------ | ----------------------- |
| Credit transactions | Post date                      | None                    |
|                     | Between post and business date | None                    |
|                     | Business date                  | Ledger balance          |
|                     |                                | Uncleared funds balance |
|                     |                                |                         |
| Debit transactions  | Post date                      | None                    |
|                     | Between post and business date | None                    |
|                     | Business date                  | Ledger balance          |
|                     |                                | Uncleared funds balance |
|                     |                                | Available balance       |

### Credit and debit clearing

The processing dates of credits and debits can affect how these are applied to balances. Note that both credit and debit clearing transactions require calling [Confirm payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-confirm-payments) or [Request bulk settlement](https://developers.pismo.io/pismo-docs/reference/post-bulk-settlement) to confirm transactions.

| Transaction process | Process date                            | Impacted balances and amount | Resulting amount       |
| ------------------- | --------------------------------------- | ---------------------------- | :--------------------- |
| Credit clearing     | After confirmation on the business date | Ledger balance               | Same as ledger balance |
|                     |                                         | Uncleared funds balance      | Amount decreased       |
|                     |                                         | Book balance                 | Amount increased       |
|                     |                                         | Available balance            | Amount increased       |
|                     |                                         | Value-dated balance          | Amount increased       |
|                     |                                         | Credit or debit balance      |                        |
|                     |                                         |                              |                        |
| Debit clearing      | After confirmation on the business date | Ledger balance               | Same as ledger balance |
|                     |                                         | Uncleared funds balance      | Amount increased       |
|                     |                                         | Book balance                 | Amount decreased       |
|                     |                                         | Value-dated balance          | Amount decreased       |
|                     |                                         | Credit or debit balance      |                        |

<Callout icon="📘" theme="info">
  **Note**

  If a transaction is not cleared within 10 days, the transaction is canceled and all balance impacts are reverted.
</Callout>

# Understanding instant clearing

Contrary to regular clearing, instant clearing does not require confirmation on the settlement date, because the funds are immediately accessible upon posting. Balances impacted by instant clearing include:

* Ledger balance
* Book balance
* Available balance
* Value-dated balance
* Credit or debit balance

For balance history, process dates have an impact on different balance types.

| Process date                   | Impacted balances       |
| ------------------------------ | ----------------------- |
| Post date                      | None                    |
| Between post and business date | None                    |
| Business date                  | Ledger balance          |
|                                | Book balance            |
|                                | Available balance       |
|                                | Value-dated balance     |
|                                | Credit or debit balance |

For dated transactions, include the `business_date` and `payment_datetime` fields in [Post payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-payments) with future dates. Be aware of holiday or administrative division metadata parameters, as they can affect transaction approval or posting date.

To keep the [value-dated balance](https://www.investopedia.com/terms/v/valuedate.asp#:~:text=A%20value%20date%20refers%20to,is%20fully%20cleared%20and%20settled.) in the balance history updated for weekends and maintain the running balance for available, book, and ledger balances, you must specify a value in `payment_datetime` of [Post payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-payments). The value must align with the cycle closing date (`skip_cycle_closing`), and its timestamp must correspond to either the present or some time in the past, but never a future date.

## How instant clearing works

Specifying either `true` or `false` in the `instant_clearing` field in [Post payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-payments) determines whether the balances are affected immediately at the time of transaction posting or on the settlement date.

To post a future business-dated transaction with instant clearing, the `instant_clearing` field in the request must be set to `true`. If this field is omitted, the default value becomes `false`, implying that the future business-dated transaction undergoes regular clearing.

You can also post future business-dated transactions by specifying `instant_clearing` = `true` in the metadata field of [Create administrative division](https://developers.pismo.io/pismo-docs/reference/post-v2-admin-division) or [Create holiday](https://developers.pismo.io/pismo-docs/reference/post-v2-holiday). In such instances, all future business transactions are instantly settled for the specified administrative division or on the defined holiday. Note that the `instant_clearing` field in a [Post payment](https://developers.pismo.io/pismo-docs/reference/corporate-v2-post-payments) request always overrides both the holiday and administrative division configurations.

<Callout icon="📘" theme="info">
  **Note**

  The Pismo platform only checks the `instant_clearing` parameter for future business-dated transactions and future business and back value-dated transactions, the parameter is ignored in all other cases.
</Callout>