> For the complete documentation index, see [llms.txt](https://developers.bead.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developers.bead.xyz/settlement/testing-settlement-in-the-test-environment.md).

# Testing Settlement in the Test Environment

The Bead test environment includes settlement flow simulators for BTC, Lightning, PayPal, Venmo, and Klarna payments. These simulators advance the settlement lifecycle automatically so you can observe and validate the full status progression without waiting for production-equivalent timing.

**How settlement progresses in the test environment**

Settlement for all payment types follows the same lifecycle: payments are grouped into batches, batches roll into settlements, and settlements are funded via ACH. In the test environment, a nightly simulator advances each stage automatically.

The status progression you will observe is:

1. Payments complete and are grouped into an open batch (`batch.status = open`).
2. Batch closes overnight (`batch.status = closed`). A settlement record is created with `status = cleared`.
3. The simulator runs. A simulated ACH event advances the settlement.
4. Settlement status moves to `dispatched`, then `paid`. A deposit record is created and moves to `paid`.

**Simulator schedule**

The simulators run automatically on a nightly schedule. Plan your test flows accordingly:

1. Process test payments.
2. Confirm the batch has closed (`batch.status = closed`) — this happens at the nightly batch close.
3. Check settlement status the following morning — the simulator will have advanced the settlement to `dispatched` or `paid`.

**What to observe when testing**

* Use `GET /Batches` filtered by `Type` (`crypto` for BTC and Lightning, `walletApps` for PayPal, Venmo, and Klarna) to confirm batch status has moved to `closed`.
* Use `GET /Settlements` filtered by `MerchantIds` and `Type` to retrieve the settlement record once the batch has closed.
* Use `GET /Settlements/{id}` to review `status`, `grossFundableAmount`, `totalTransactionFees`, `depositFees`, and `netFundableAmount`.
* Use `GET /Settlements/{id}/deposits` to confirm the deposit record `status` once settlement completes.

Expected end state after a full nightly cycle: batch `status = closed`, settlement `status = paid`, deposit `status = paid`.

**Differences from production**

| Behavior           | Production                                    | Test environment                    |
| ------------------ | --------------------------------------------- | ----------------------------------- |
| Batch close        | Nightly (midnight ET)                         | Nightly (midnight ET)               |
| Settlement funding | Real ACH event                                | Simulated ACH event                 |
| Timing to `paid`   | Vendor-dependent (hours to next business day) | Advances overnight on test schedule |

**Next steps**

* Use [Settlements](/settlement/settlements.md) to review settlement records and fee breakdowns.
* Use [Batches](/settlement/batches.md) to track batch status and payment grouping.
* Use [Deposits](/settlement/deposits.md) to confirm funded movement once settlement completes.
* Use [Payment Settlements](broken://spaces/jL0BeBYhFGcs8tIiuCcV/pages/0I8XtK4ztAK8gab9XUjz) for payment-level settlement detail.
* Use [Merchant Settlements](broken://spaces/jL0BeBYhFGcs8tIiuCcV/pages/zKSBYYX80HC72lJTvqVi) for the merchant-level settlement event view.


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