---
title: "What is a transaction template?"
slug: "what-is-a-transaction-template"
tags: ["instrument event"]
updated: 2024-08-20T13:18:19Z
published: 2024-08-20T13:18:19Z
canonical: "support.lusid.com/what-is-a-transaction-template"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://support.lusid.com/llms.txt
> Use this file to discover all available pages before exploring further.

# What is a transaction template?

A *transaction template* is a blueprint for LUSID to automatically generate transactions in appropriate portfolios in response to a particular type of [instrument event](/v1/docs/what-is-an-event-in-lusid).

For example, LUSID emits a bond coupon event every time a coupon is due on an instrument mastered as type `Bond`. LUSID also provides a *default transaction template* for bond coupon events that automatically generates an [output transaction](/v1/docs/input-and-output-transactions) for the coupon amount in every portfolio with a holding in that bond. You can use the default transaction template as-is, or [create your own custom template](/v1/docs/how-do-i-create-a-custom-transaction-template) to override and configure the process.

Note that an instrument event can be:

- An instrument lifecycle event. [See a list](/v1/docs/understanding-instrument-lifecycle-events-emitted-by-lusid).
- A corporate action event. [See a list](/v1/docs/understanding-dedicated-corporate-action-events).

LUSID provides a default transaction template for every type of event. To examine a template, call the [GetTransactionTemplate](https://www.lusid.com/docs/api#operation/GetTransactionTemplate) API, specifying:

- The appropriate `instrumentEventType`, for example `BondCouponEvent`.
- An `instrumentType` emitting this event, for example `Bond`.
- A `scope` of `default`. Note this is a protected scope and you cannot edit the default transaction templates, nor add your own in this location.

For example:

```json
curl -X GET "https://<your-domain>.lusid.com/api/api/instrumenteventtypes/BondCouponEvent/transactiontemplates/Bond/default" 
  -H "Authorization: Bearer <your-API-access-token>"
```

The response to this call is currently as follows (note default transaction templates may evolve over time):

```json
{
  "instrumentType": "Bond",
  "instrumentEventType": "BondCouponEvent",
  "description": "LUSID default template for automatically generated transactions in respect of Bond Coupon instrument events.",
  "scope": "default",
  "componentTransactions": [
    {
      "displayName": "Bond Income",
      "transactionFieldMap": {
        "transactionId": "{{instrumentEventId}}-{{holdingId}}",
        "type": "BondCoupon",
        "source": "default",
        "instrument": "{{instrument}}",
        "transactionDate": "{{BondCouponEvent.exDate}}",
        "settlementDate": "{{BondCouponEvent.paymentDate}}",
        "units": "{{eligibleBalance}}",
        "transactionPrice": {
          "price": "{{BondCouponEvent.couponPerUnit}}",
          "type": "CashFlowPerUnit"
        },
        "transactionCurrency": "{{BondCouponEvent.currency}}",
        "exchangeRate": "1",
        "totalConsideration": {
          "currency": "{{BondCouponEvent.currency}}",
          "amount": "{{BondCouponEvent.couponAmount}}"
        }
      },
      "transactionPropertyMap": []
    }
  ],
  ...
}
```

Note the following:

- This template handles instrument events of type `BondCouponEvent` emitted by instruments of type `Bond`.
- It is domiciled in the `default` (that is, system) transaction template `scope`.
- It generates a single transaction for each portfolio with a holding in the underlying instrument. Note it is possible for a template to generate multiple transactions.
- This transaction has no `condition`; that is, it is always produced when LUSID emits a bond coupon event.
- This transaction belongs to a `BondCoupon` transaction type, which must exist in the `default` transaction type `source`.
- The `transactionDate` is the ex-dividend date and the `settlementDate` is the payment date.
- The quantity held (`units`) is assessed dynamically per-portfolio and per-coupon.
- The `transactionPrice.price` is the coupon per unit, which is calculated as the annual coupon rate multiplied by the principal and divided by the number of coupons per year.
- The `transactionCurrency` is the currency specified in the bond economic definition, and an `exchangeRate` of `1` means the settlement currency is the same.
- The `totalConsideration.Amount` is the coupon per unit scaled by the quantity held.

Note this template does not set the `Transaction/default/TradeToPortfolioRate` [system property](/v1/docs/what-is-a-system-property#transaction-system-properties) to calculate the cost basis of the transaction in the portfolio currency, where this is different to the transaction/settlement currency. A mechanism for setting an exchange rate for foreign currency transactions is coming soon.