Transactions and manual vs automatic calculation of amounts

  • Updated on Dec 2, 2024
  • Published on Nov 29, 2024
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When you load transactions into LUSID, you can either manually specify all the numeric data points yourself, or alternatively ask LUSID to automatically calculate the following for you:

  • Total consideration, which is typically the trade amount payable or receivable after fees.

  • Gross consideration, which is defined as total consideration before fees.

  • Notional amount for transactions in Future and ContractForDifference instruments.

  • Accrued interest bought or sold for transactions in Bond, ComplexBond and InflationLinkedBond instruments.

To do this, add calculations to the transaction types to which those transactions belong. Note a calculation applies to every transaction belonging to the type; it cannot be made conditional.

Note the following:

  • While you are not required to capture all these data points for an individual transaction, certain LUSID downstream features may rely on them, in particular instrument events.

  • If you manually specify (for example) a total consideration and ask LUSID to calculate it for you, your manual amount prevails.

Consider the following example of a bond purchase transaction:

  • Number of units purchased: 100000

  • Price: 100

  • Trade commission: £50

  • Bond interest bought: £452.06

Input transaction for manual specification

Input transaction for automatic calculation

{
  "transactionRequest-1": {
    "transactionId": "Txn-001",
    "type": "Buy",
    "instrumentIdentifiers": {"Instrument/default/Figi": "BBG000ABC123"},
    "transactionDate": "2024-06-15T00:00:00.0000000+00:00",
    "settlementDate": "2024-06-18T00:00:00.0000000+00:00",
    "units": 100000,
    "transactionPrice": {"price": 100, "type": "CleanPrice"},
    "totalConsideration": {"amount": 100502.06, "currency": "GBP"},
    "properties": {
      "Transaction/default/GrossConsideration": {
        "key": "Transaction/default/GrossConsideration",
        "value": {
          "metricValue": {
            "value": 100452.06,
            "unit": "GBP"
          }
        }
      },
      "Transaction/MyProperties/TotalCapitalisedFees": {
        "key": "Transaction/MyProperties/TotalCapitalisedFees",
        "value": {
          "metricValue": {
            "value": 50,
            "unit": "GBP"
          }
        }
      },
      "Transaction/default/BondInterest": {
        "key": "Transaction/default/BondInterest",
        "value": {
          "metricValue": {
            "value": 452.06,
            "unit": "GBP"
          }
        }
      }
    }
  }
}
{
  "transactionRequest-1": {
    "transactionId": "Txn-001",
    "type": "Buy",
    "instrumentIdentifiers": {"Instrument/default/Figi": "BBG000ABC123"},
    "transactionDate": "2024-06-15T00:00:00.0000000+00:00",
    "settlementDate": "2024-06-18T00:00:00.0000000+00:00",
    "units": 100000,
    "transactionPrice": {"price": 100, "type": "CleanPrice"},
    "totalConsideration": {"amount": 0, "currency": "GBP"},
    "properties": {
      "Transaction/MyProperties/TotalCapitalisedFees": {
        "key": "Transaction/MyProperties/TotalCapitalisedFees",
        "value": {
          "metricValue": {
            "value": 50,
            "unit": "GBP"
          }
        }
      }
    }
  }
}

You calculate totalConsideration.amount yourself, and ideally record all the components using a combination of system and custom properties.

You set totalConsideration.amount to 0, and only need record the trade commission using a custom property.

The Buy transaction type can have any economic impact you like, but might be defined as follows:

Buy transaction type for manual specification

Buy transaction type for automatic calculation

{
  "aliases": [
    {
      "type": "Buy",
      "description": "Transaction type for purchases",
      "transactionClass": "Basic",
      "transactionRoles": "AllRoles",
      "isDefault": false
    }
  ],
  "movements": [
    {
      "name": "Increase units",
      "movementTypes": "StockMovement",
      "side": "Side1",
      "direction": 1
    },
    {
      "name": "Decrease cash",
      "movementTypes": "CashCommitment",
      "side": "Side2",
      "direction": -1
    }
  ]
}

{
  "aliases": [
    {
      "type": "Buy",
      "description": "Transaction type for purchases",
      "transactionClass": "Basic",
      "transactionRoles": "AllRoles",
      "isDefault": false
    }
  ],
  "movements": [
    {
      "name": "Increase units",
      "movementTypes": "StockMovement",
      "side": "Side1",
      "direction": 1
    },
    {
      "name": "Decrease cash",
      "movementTypes": "CashCommitment",
      "side": "Side2",
      "direction": -1
    }
  ],
  "calculations": [
    {
      "type": "Txn:BondInterest"
    },
    {
      "type": "Txn:GrossConsideration"
    },
    {
      "type": "DeriveTotalConsideration",
      "formula": "Txn:GrossConsideration + Properties[Transaction/MyProperties/TotalCapitalisedFees]"
    }
  ]
}

Note that LUSID generates the same output transaction in both circumstances, so the impact on holdings is identical:

{
      "transactionId": "Txn001",
      "type": "Buy",
      "instrumentIdentifiers": {
        "Instrument/default/LusidInstrumentId": "LUID_00003E75",
        "Instrument/default/Figi": "BBG000ABC123"
      },
      "instrumentScope": "default",
      "instrumentUid": "LUID_00003E75",
      "transactionDate": "2024-06-15T00:00:00.0000000+00:00",
      "settlementDate": "2024-06-18T00:00:00.0000000+00:00",
      "units": 100000,
      "transactionAmount": 100050,
      "transactionPrice": {
        "price": 100,
        "type": "CleanPrice"
      },
      "totalConsideration": {
        "amount": 100502.06,
        "currency": "USD"
      },
      "exchangeRate": 1,
      "transactionToPortfolioRate": 1,
      "transactionCurrency": "USD",
      "properties": {
        "Transaction/Fees/TotalCapitalisedFees": {
          "key": "Transaction/Fees/TotalCapitalisedFees",
          "value": {
            "metricValue": {
              "value": 50
            }
          }
        },
        "Transaction/default/GrossConsideration": {
          "key": "Transaction/default/GrossConsideration",
          "value": {
            "metricValue": {
              "value": 100452.06
            }
          }
        },
        "Transaction/default/BondInterest": {
          "key": "Transaction/default/BondInterest",
          "value": {
            "metricValue": {
              "value": 452.06
            }
          }
        },
        "Transaction/default/ResultantHolding": {
          "key": "Transaction/default/ResultantHolding",
          "value": {
            "metricValue": {
              "value": 100000
            }
          }
        }
      },
      "transactionStatus": "Active",
      "realisedGainLoss": [],
      "sourceType": "InputTransaction",
      "resolvedTransactionTypeDetails": {
        "scope": "default",
        "source": "default",
        "type": "Buy"
      }
}