Understand how movement types define the economic movements that impact your cash and instrument holding balances.
When you configure your transaction types inside LUSID you can specify a number of "movement types".
Every transaction that is entered into LUSID is deconstructed into a set of underlying economic movements. Each movement has one or more movement types associated with. The movement type controls how the movement is categorised and when it is applied.
For example on the sale of an equity you will typically have two movements. A reduction in the quantity of the equity that you just sold and an increase in your cash balance. For each movement you can control when the movement is applied via movement types.
For the reduction in the equity you may specify the "Traded" and "Settlement" movement types. This will ensure that the movement is first updated on the trade date and then settled on the settlement date. Both of which are provided when you load a transaction into LUSID.
For the increase in your cash balance you may specify the "Commitment" and "CashSettlement" movement types. This will ensure that the cash shows as receivable from the trade date and settled from the settlement date provided when you upserted the transaction.
You can combine any of the movement types below for each movement to reflect the underlying movements made by a transaction type.
You can find a list of the available movement types below:
- Traded: Updates the trade-date position of the Instrument
- Settlement: Updates the settlement-date position of the Instrument
- ForwardFx: A transfer of funds from one currency balance to another at a future point in time
- Commitment: Updates the cash amount to reflect that it is committed to settling a trade
- Receivable: Updates the cash amount to reflect that it is soon to be received from settlement of a trade
- Accrual: Updates the cash amount to indicate that it has accrued from an interest bearing instrument
- CashSettlement: Updates the cash amount to reflect that it has been settled