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An operation is the smallest unit of a transaction. Every transaction contains two or more operations (Figure 1). Each operation records a change in the balance of one account:
  • A Debit operation records value that moves out of an account — the source.
  • A Credit operation records value that moves into an account — the destination.
The effect on the stored balance depends on the balance direction. A normal account (the common case) shrinks on a debit and grows on a credit. A transaction is a set of operations that must net to zero from the ledger’s view. For example, a P2P payment with a fee includes:
  • a $100 debit from the sender’s account.
  • a $98 credit to the recipient’s account.
  • a $2 credit to the platform’s fee account.
Midaz makes sure a transaction balances before it commits. Operations also carry metadata such as timestamps and references to the transaction they belong to. You create a transaction through the Midaz JSON API. For each transaction, you specify a set of operations. Each operation has an amount, an asset, and a source or destination account. Midaz then checks that the operations balance before it commits them.

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Key characteristics

  • Each operation belongs to a transaction and references a specific account and asset.
  • Operations include metadata like amount, direction (debit/credit), type, timestamps, references, and more.
  • Midaz creates operations when you start a transaction and fills them with the data you provide.
  • Midaz validates all operations against the configured rules before it commits them to the ledger.
Every operation has a direction (debit or credit) and a type. The direction is the double-entry backbone described above. The type classifies the movement. Beyond the standard CREDIT and DEBIT, the type marks special movements:
  • ON_HOLD and RELEASE — two-phase fund reservations.
  • OVERDRAFT — system-generated companion operations on the internal overdraft balance.
  • BLOCK and UNBLOCK — the label applied to every operation of a transaction created through the dedicated block and unblock endpoints. The label overrides only the operation type, never its direction or amount.
The direction always keeps its debit or credit meaning, regardless of type.

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Operation Routes

With Accounting Routes, each operation connects to structured validation logic. That logic lives in Operation Routes.

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What is an Operation Route?

An Operation Route is a validation rule. It defines which account types or specific accounts a transaction component can use. It also sets the accounting direction (source or destination) and a descriptive annotation. It works as a validation layer between transaction input and ledger structure. Each operation you submit must meet the account requirements and business rules.
In short: transactions contain multiple operations. Operation Routes validate each operation against the configured validation rules.

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Operation > Operation Route relationship

When you submit a transaction to Midaz, it contains multiple Operations. With Account Types and Accounting Routes enabled, Midaz validates each operation against the rules in the Operation Routes. This makes sure that:
  • The specified account matches the expected account type or specific account requirement.
  • The operation direction (debit/credit) aligns with the route definition.
This adds a layer of validation, consistency, and integrity to transaction processing. It matters most for structured financial requirements.
If the operations you submit do not match the configured Operation Route requirements, Midaz fails the validation and rejects the transaction.

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Managing Operations

Midaz generates operations automatically as part of a transaction flow. You cannot create an operation directly. You can query an operation as needed.