diff --git a/compiler/damlc/lib/DA/Cli/Damlc/Test.hs b/compiler/damlc/lib/DA/Cli/Damlc/Test.hs
index 0f52625408c..0377338f443 100644
--- a/compiler/damlc/lib/DA/Cli/Damlc/Test.hs
+++ b/compiler/damlc/lib/DA/Cli/Damlc/Test.hs
@@ -263,8 +263,7 @@ prettyErr lfVersion err = case err of
 prettyResult :: SS.ScenarioResult -> DA.Pretty.Doc Pretty.SyntaxClass
 prettyResult result =
     let nTx = length (SS.scenarioResultScenarioSteps result)
-        activeContracts = S.fromList (V.toList (SS.scenarioResultActiveContracts result))
-        nActive = length $ filter (SS.isActive activeContracts) (V.toList (SS.scenarioResultNodes result))
+        nActive = length $ filter (SS.isActive (SS.activeContractsFromScenarioResult result)) (V.toList (SS.scenarioResultNodes result))
     in DA.Pretty.typeDoc_ "ok, "
     <> DA.Pretty.int nActive <> DA.Pretty.typeDoc_ " active contracts, "
     <> DA.Pretty.int nTx <> DA.Pretty.typeDoc_ " transactions."
diff --git a/compiler/scenario-service/client/src/DA/Daml/LF/PrettyScenario.hs b/compiler/scenario-service/client/src/DA/Daml/LF/PrettyScenario.hs
index 2bbf00b9e89..ca0d394c100 100644
--- a/compiler/scenario-service/client/src/DA/Daml/LF/PrettyScenario.hs
+++ b/compiler/scenario-service/client/src/DA/Daml/LF/PrettyScenario.hs
@@ -4,7 +4,8 @@
 
 -- | Pretty-printing of scenario results
 module DA.Daml.LF.PrettyScenario
-  ( prettyScenarioResult
+  ( activeContractsFromScenarioResult
+  , prettyScenarioResult
   , prettyScenarioError
   , prettyBriefScenarioError
   , prettyWarningMessage
@@ -132,6 +133,14 @@ parseNodeId =
   where
     dropHash s = fromMaybe s $ stripPrefix "#" s
 
+activeContractsFromScenarioResult :: ScenarioResult -> S.Set TL.Text
+activeContractsFromScenarioResult result =
+    S.fromList (V.toList (scenarioResultActiveContracts result))
+
+activeContractsFromScenarioError :: ScenarioError -> S.Set TL.Text
+activeContractsFromScenarioError err =
+    S.fromList (V.toList (scenarioErrorActiveContracts err))
+
 prettyScenarioResult
   :: LF.World -> S.Set TL.Text -> ScenarioResult -> Doc SyntaxClass
 prettyScenarioResult world activeContracts (ScenarioResult steps nodes retValue _finaltime traceLog warnings _) =
@@ -1094,9 +1103,8 @@ renderScenarioError world err = TL.toStrict $ Blaze.renderHtml $ do
             H.style $ H.text Pretty.highlightStylesheet
             H.script "" H.! A.src "$webviewSrc"
             H.link H.! A.rel "stylesheet" H.! A.href "$webviewCss"
-        let activeContracts = S.fromList (V.toList (scenarioErrorActiveContracts err))
         let tableView = do
-                table <- renderTableView world activeContracts (scenarioErrorNodes err)
+                table <- renderTableView world (activeContractsFromScenarioError err) (scenarioErrorNodes err)
                 pure $ H.div H.! A.class_ "table" $ do
                   Pretty.renderHtml 128 $ annotateSC ErrorSC "Script execution failed, displaying state before failing transaction"
                   table
diff --git a/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/scenario/ScenarioLedger.scala b/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/scenario/ScenarioLedger.scala
index 77a38be7046..e123ecb9e21 100644
--- a/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/scenario/ScenarioLedger.scala
+++ b/daml-lf/interpreter/src/main/scala/com/digitalasset/daml/lf/scenario/ScenarioLedger.scala
@@ -21,7 +21,6 @@ import Value._
 
 import com.daml.scalautil.Statement.discard
 
-import scala.annotation.tailrec
 import scala.collection.immutable
 
 /** An in-memory representation of a ledger for scenarios */
@@ -375,142 +374,25 @@ object ScenarioLedger {
 
   case class UniqueKeyViolation(gk: GlobalKey)
 
-  private def processTransaction(
+  /** Functions for updating the ledger with new transactional information.
+    *
+    * @param trId transaction identity
+    * @param richTr (enriched) transaction
+    * @param locationInfo location map
+    */
+  class TransactionProcessor(
       trId: TransactionId,
       richTr: RichTransaction,
       locationInfo: Map[NodeId, Location],
-      ledgerData: LedgerData,
-  ): Either[UniqueKeyViolation, LedgerData] = {
+  ) {
 
-    final case class RollbackBeginState(
-        activeContracts: Set[ContractId],
-        activeKeys: Map[GlobalKey, ContractId],
-    )
-
-    final case class ProcessingNode(
-        // The id of the direct parent or None.
-        mbParentId: Option[NodeId],
-        // The id of the nearest rollback ancestor. If this is
-        // a rollback node itself, it points to itself.
-        mbRollbackAncestorId: Option[NodeId],
-        children: List[NodeId],
-        // For rollback nodes, we store the previous state here and restore it.
-        // For exercise nodes, we don’t need to restore anything.
-        prevState: Option[RollbackBeginState],
-    )
-
-    @tailrec
-    def processNodes(
-        cache0: LedgerData,
-        enps: List[ProcessingNode],
-    ): LedgerData = enps match {
-      case Nil => cache0
-      case ProcessingNode(_, _, Nil, optPrevState) :: restENPs => {
-        val cache1 = optPrevState.fold(cache0) { case prevState =>
-          cache0.copy(
-            activeContracts = prevState.activeContracts,
-            activeKeys = prevState.activeKeys,
-          )
+    def duplicateKeyCheck(ledgerData: LedgerData): Either[UniqueKeyViolation, Unit] = {
+      val inactiveKeys = richTr.transaction.contractKeyInputs
+        .fold(error => crash(s"$error: inconsistent transaction"), identity)
+        .collect { case (key, _: Tx.KeyInactive) =>
+          key
         }
-        processNodes(cache1, restENPs)
-      }
-      case (processingNode @ ProcessingNode(
-            mbParentId,
-            mbRollbackAncestorId,
-            nodeId :: restOfNodeIds,
-            optPrevState,
-          )) :: restENPs =>
-        val eventId = EventId(trId.id, nodeId)
-        richTr.transaction.nodes.get(nodeId) match {
-          case None =>
-            crash(s"processTransaction: non-existent node '$eventId'.")
-          case Some(node) =>
-            val newLedgerNodeInfo = LedgerNodeInfo(
-              node = node,
-              optLocation = locationInfo.get(nodeId),
-              transaction = trId,
-              effectiveAt = richTr.effectiveAt,
-              disclosures = Map.empty,
-              referencedBy = Set.empty,
-              consumedBy = None,
-              rolledbackBy = mbRollbackAncestorId,
-              parent = mbParentId.map(EventId(trId.id, _)),
-            )
-            val newCache =
-              cache0.copy(nodeInfos = cache0.nodeInfos + (eventId -> newLedgerNodeInfo))
-            val idsToProcess = processingNode.copy(children = restOfNodeIds) :: restENPs
 
-            node match {
-              case rollback: Node.Rollback =>
-                val rollbackState =
-                  RollbackBeginState(newCache.activeContracts, newCache.activeKeys)
-                processNodes(
-                  newCache,
-                  ProcessingNode(
-                    Some(nodeId),
-                    Some(nodeId),
-                    rollback.children.toList,
-                    Some(rollbackState),
-                  ) :: idsToProcess,
-                )
-
-              case nc: Node.Create =>
-                val newCache1 = newCache.createdIn(nc.coid, eventId)
-                processNodes(newCache1, idsToProcess)
-
-              case Node.Fetch(referencedCoid, templateId @ _, _, _, _, _, _, _) =>
-                val newCacheP =
-                  newCache.updateLedgerNodeInfo(referencedCoid)(info =>
-                    info.copy(referencedBy = info.referencedBy + eventId)
-                  )
-
-                processNodes(newCacheP, idsToProcess)
-
-              case ex: Node.Exercise =>
-                val newCache0 =
-                  newCache.updateLedgerNodeInfo(ex.targetCoid)(info =>
-                    info.copy(
-                      referencedBy = info.referencedBy + eventId,
-                      consumedBy = optPrevState match {
-                        // consuming exercise outside a rollback node
-                        case None if ex.consuming => Some(eventId)
-                        case _ => info.consumedBy
-                      },
-                    )
-                  )
-
-                processNodes(
-                  newCache0,
-                  ProcessingNode(
-                    Some(nodeId),
-                    mbRollbackAncestorId,
-                    ex.children.toList,
-                    None,
-                  ) :: idsToProcess,
-                )
-
-              case nlkup: Node.LookupByKey =>
-                nlkup.result match {
-                  case None =>
-                    processNodes(newCache, idsToProcess)
-                  case Some(referencedCoid) =>
-                    val newCacheP =
-                      newCache.updateLedgerNodeInfo(referencedCoid)(info =>
-                        info.copy(referencedBy = info.referencedBy + eventId)
-                      )
-
-                    processNodes(newCacheP, idsToProcess)
-                }
-            }
-        }
-    }
-
-    val inactiveKeys = richTr.transaction.contractKeyInputs
-      .fold(error => crash(s"$error: inconsistent transaction"), identity)
-      .collect { case (key, _: Tx.KeyInactive) =>
-        key
-      }
-    val duplicateKeyCheck: Either[UniqueKeyViolation, Unit] =
       inactiveKeys.find(ledgerData.activeKeys.contains(_)) match {
         case Some(duplicateKey) =>
           Left(UniqueKeyViolation(duplicateKey))
@@ -518,45 +400,185 @@ object ScenarioLedger {
         case None =>
           Right(())
       }
+    }
 
-    for {
-      _ <- duplicateKeyCheck
-    } yield {
-      val cacheAfterProcess = processNodes(
-        ledgerData,
-        List(ProcessingNode(None, None, richTr.transaction.roots.toList, None)),
+    def addNewLedgerNodes(historicalLedgerData: LedgerData): LedgerData =
+      richTr.transaction.transaction.fold[LedgerData](historicalLedgerData) {
+        case (ledgerData, (nodeId, node)) =>
+          val eventId = EventId(trId.id, nodeId)
+          val newLedgerNodeInfo = LedgerNodeInfo(
+            node = node,
+            optLocation = locationInfo.get(nodeId),
+            transaction = trId,
+            effectiveAt = richTr.effectiveAt,
+            // Following fields will be updated by additional calls to node processing code
+            disclosures = Map.empty,
+            referencedBy = Set.empty,
+            consumedBy = None,
+            rolledbackBy = None,
+            parent = None,
+          )
+
+          ledgerData.copy(nodeInfos = ledgerData.nodeInfos + (eventId -> newLedgerNodeInfo))
+      }
+
+    def createdInAndReferenceByUpdates(historicalLedgerData: LedgerData): LedgerData =
+      richTr.transaction.transaction.fold[LedgerData](historicalLedgerData) {
+        case (ledgerData, (nodeId, createNode: Node.Create)) =>
+          ledgerData.createdIn(createNode.coid, EventId(trId.id, nodeId))
+
+        case (ledgerData, (nodeId, exerciseNode: Node.Exercise)) =>
+          ledgerData.updateLedgerNodeInfo(exerciseNode.targetCoid)(ledgerNodeInfo =>
+            ledgerNodeInfo.copy(referencedBy =
+              ledgerNodeInfo.referencedBy + EventId(trId.id, nodeId)
+            )
+          )
+
+        case (ledgerData, (nodeId, fetchNode: Node.Fetch)) =>
+          ledgerData.updateLedgerNodeInfo(fetchNode.coid)(ledgerNodeInfo =>
+            ledgerNodeInfo.copy(referencedBy =
+              ledgerNodeInfo.referencedBy + EventId(trId.id, nodeId)
+            )
+          )
+
+        case (ledgerData, (nodeId, lookupNode: Node.LookupByKey)) =>
+          lookupNode.result match {
+            case None =>
+              ledgerData
+
+            case Some(referencedCoid) =>
+              ledgerData.updateLedgerNodeInfo(referencedCoid)(ledgerNodeInfo =>
+                ledgerNodeInfo.copy(referencedBy =
+                  ledgerNodeInfo.referencedBy + EventId(trId.id, nodeId)
+                )
+              )
+          }
+
+        case (ledgerData, (_, _: Node)) =>
+          ledgerData
+      }
+
+    def parentUpdates(historicalLedgerData: LedgerData): LedgerData =
+      richTr.transaction.transaction.fold[LedgerData](historicalLedgerData) {
+        case (ledgerData, (nodeId, exerciseNode: Node.Exercise)) =>
+          exerciseNode.children.foldLeft[LedgerData](ledgerData) {
+            case (updatedLedgerData, childNodeId) =>
+              updatedLedgerData.updateLedgerNodeInfo(EventId(trId.id, childNodeId))(
+                ledgerNodeInfo => ledgerNodeInfo.copy(parent = Some(EventId(trId.id, nodeId)))
+              )
+          }
+
+        case (ledgerData, (nodeId, rollbackNode: Node.Rollback)) =>
+          rollbackNode.children.foldLeft[LedgerData](ledgerData) {
+            case (updatedLedgerData, childNodeId) =>
+              updatedLedgerData.updateLedgerNodeInfo(EventId(trId.id, childNodeId))(
+                ledgerNodeInfo => ledgerNodeInfo.copy(parent = Some(EventId(trId.id, nodeId)))
+              )
+          }
+
+        case (ledgerData, (_, _: Node)) =>
+          ledgerData
+      }
+
+    def consumedByUpdates(ledgerData: LedgerData): LedgerData = {
+      var ledgerDataResult = ledgerData
+
+      for ((contractId, nodeId) <- richTr.transaction.transaction.consumedBy) {
+        ledgerDataResult = ledgerDataResult.updateLedgerNodeInfo(contractId) { ledgerNodeInfo =>
+          ledgerNodeInfo.copy(consumedBy = Some(EventId(trId.id, nodeId)))
+        }
+      }
+
+      ledgerDataResult
+    }
+
+    def rolledbackByUpdates(ledgerData: LedgerData): LedgerData = {
+      var ledgerDataResult = ledgerData
+
+      for ((nodeId, rollbackNodeId) <- richTr.transaction.transaction.rolledbackBy) {
+        ledgerDataResult = ledgerDataResult.updateLedgerNodeInfo(EventId(trId.id, nodeId)) {
+          ledgerNodeInfo =>
+            ledgerNodeInfo.copy(rolledbackBy = Some(rollbackNodeId))
+        }
+      }
+
+      ledgerDataResult
+    }
+
+    def activeContractAndKeyUpdates(ledgerData: LedgerData): LedgerData = {
+      ledgerData.copy(
+        activeContracts =
+          ledgerData.activeContracts ++ richTr.transaction.localContracts.keySet -- richTr.transaction.inactiveContracts,
+        activeKeys = richTr.transaction.updatedContractKeys.foldLeft(ledgerData.activeKeys) {
+          case (activeKeys, (key, Some(cid))) =>
+            activeKeys + (key -> cid)
+
+          case (activeKeys, (key, None)) =>
+            activeKeys - key
+        },
       )
-      val cacheActiveness =
-        cacheAfterProcess.copy(
-          activeContracts =
-            cacheAfterProcess.activeContracts ++ richTr.transaction.localContracts.keySet -- richTr.transaction.inactiveContracts,
-          activeKeys =
-            richTr.transaction.updatedContractKeys.foldLeft(cacheAfterProcess.activeKeys) {
-              case (activeKs, (key, Some(cid))) =>
-                activeKs + (key -> cid)
-              case (activeKs, (key, None)) =>
-                activeKs - key
-            },
-        )
+    }
+
+    def disclosureUpdates(ledgerData: LedgerData): LedgerData = {
       // NOTE(MH): Since `addDisclosures` is biased towards existing
       // disclosures, we need to add the "stronger" explicit ones first.
-      val cacheWithExplicitDisclosures =
-        richTr.blindingInfo.disclosure.foldLeft(cacheActiveness) {
-          case (cacheP, (nodeId, witnesses)) =>
-            cacheP.updateLedgerNodeInfo(EventId(richTr.transactionId, nodeId))(
-              _.addDisclosures(witnesses.map(_ -> Disclosure(since = trId, explicit = true)).toMap)
-            )
-        }
+      richTr.blindingInfo.disclosure.foldLeft(ledgerData) { case (cacheP, (nodeId, witnesses)) =>
+        cacheP.updateLedgerNodeInfo(EventId(richTr.transactionId, nodeId))(
+          _.addDisclosures(witnesses.map(_ -> Disclosure(since = trId, explicit = true)).toMap)
+        )
+      }
+    }
 
-      richTr.blindingInfo.divulgence.foldLeft(cacheWithExplicitDisclosures) {
-        case (cacheP, (coid, divulgees)) =>
-          cacheP.updateLedgerNodeInfo(cacheWithExplicitDisclosures.coidToNodeId(coid))(
-            _.addDisclosures(divulgees.map(_ -> Disclosure(since = trId, explicit = false)).toMap)
-          )
+    def divulgenceUpdates(ledgerData: LedgerData): LedgerData = {
+      richTr.blindingInfo.divulgence.foldLeft(ledgerData) { case (cacheP, (coid, divulgees)) =>
+        cacheP.updateLedgerNodeInfo(ledgerData.coidToNodeId(coid))(
+          _.addDisclosures(divulgees.map(_ -> Disclosure(since = trId, explicit = false)).toMap)
+        )
       }
     }
   }
 
+  /** Update the ledger (which records information on all historical transactions) with new transaction information.
+    *
+    * @param trId transaction identity
+    * @param richTr (enriched) transaction
+    * @param locationInfo location map
+    * @param ledgerData ledger recording all historical transaction that have been processed
+    * @return updated ledger with new transaction information
+    */
+  private def processTransaction(
+      trId: TransactionId,
+      richTr: RichTransaction,
+      locationInfo: Map[NodeId, Location],
+      ledgerData: LedgerData,
+  ): Either[UniqueKeyViolation, LedgerData] = {
+
+    val processor: TransactionProcessor = new TransactionProcessor(trId, richTr, locationInfo)
+
+    for {
+      _ <- processor.duplicateKeyCheck(ledgerData)
+    } yield {
+      // Update ledger data with new transaction node information *before* performing any other updates
+      var cachedLedgerData: LedgerData = processor.addNewLedgerNodes(ledgerData)
+
+      // Update ledger data with any new created in and referenced by information
+      cachedLedgerData = processor.createdInAndReferenceByUpdates(cachedLedgerData)
+      // Update ledger data with any new parent information
+      cachedLedgerData = processor.parentUpdates(cachedLedgerData)
+      // Update ledger data with any new consumed by information
+      cachedLedgerData = processor.consumedByUpdates(cachedLedgerData)
+      // Update ledger data with any new rolled back by information
+      cachedLedgerData = processor.rolledbackByUpdates(cachedLedgerData)
+      // Update ledger data with any new active contract information
+      cachedLedgerData = processor.activeContractAndKeyUpdates(cachedLedgerData)
+      // Update ledger data with any new disclosure information
+      cachedLedgerData = processor.disclosureUpdates(cachedLedgerData)
+      // Update ledger data with any new divulgence information
+      cachedLedgerData = processor.divulgenceUpdates(cachedLedgerData)
+
+      cachedLedgerData
+    }
+  }
 }
 
 // ----------------------------------------------------------------
diff --git a/daml-lf/transaction/src/main/scala/com/digitalasset/daml/lf/transaction/Transaction.scala b/daml-lf/transaction/src/main/scala/com/digitalasset/daml/lf/transaction/Transaction.scala
index 91f216c743d..94cbad11406 100644
--- a/daml-lf/transaction/src/main/scala/com/digitalasset/daml/lf/transaction/Transaction.scala
+++ b/daml-lf/transaction/src/main/scala/com/digitalasset/daml/lf/transaction/Transaction.scala
@@ -52,6 +52,7 @@ final case class VersionedTransaction private[lf] (
   *
   * @param nodes The nodes of this transaction.
   * @param roots References to the root nodes of the transaction.
+  *
   * Users of this class may assume that all instances are well-formed, i.e., `isWellFormed.isEmpty`.
   * For performance reasons, users are not required to call `isWellFormed`.
   * Therefore, it is '''forbidden''' to create ill-formed instances, i.e., instances with `!isWellFormed.isEmpty`.
@@ -255,7 +256,7 @@ sealed abstract class HasTxNodes {
 
   def roots: ImmArray[NodeId]
 
-  /** The union of the informees of a all the action nodes. */
+  /** The union of the informees of all the action nodes. */
   lazy val informees: Set[Ref.Party] =
     nodes.values.foldLeft(Set.empty[Ref.Party]) {
       case (acc, node: Node.Action) => acc | node.informeesOfNode
@@ -350,8 +351,8 @@ sealed abstract class HasTxNodes {
     }
 
   /** Returns the IDs of all the consumed contracts.
-    *  This includes transient contracts but it does not include contracts
-    *  consumed in rollback nodes.
+    * This includes transient contracts but it does not include contracts
+    * consumed in rollback nodes.
     */
   final def consumedContracts[Cid2 >: ContractId]: Set[Cid2] =
     foldInExecutionOrder(Set.empty[Cid2])(
@@ -465,6 +466,60 @@ sealed abstract class HasTxNodes {
     }
   }
 
+  /** Keys are contracts (that have been consumed) and values are the nodes where the contract was consumed.
+    * Nodes under rollbacks (both exercises and creates) are ignored (as they have been rolled back).
+    * The result includes both local contracts created in the transaction (if they’ve been consumed) as well as global
+    * contracts created in previous transactions. It does not include local contracts created under a rollback.
+    */
+  final def consumedBy: Map[ContractId, NodeId] =
+    foldInExecutionOrder[Map[ContractId, NodeId]](HashMap.empty)(
+      exerciseBegin = (consumedByMap, nodeId, exerciseNode) => {
+        if (exerciseNode.consuming) {
+          (consumedByMap + (exerciseNode.targetCoid -> nodeId), ChildrenRecursion.DoRecurse)
+        } else {
+          (consumedByMap, ChildrenRecursion.DoRecurse)
+        }
+      },
+      rollbackBegin = (consumedByMap, _, _) => {
+        (consumedByMap, ChildrenRecursion.DoNotRecurse)
+      },
+      leaf = (consumedByMap, _, _) => consumedByMap,
+      exerciseEnd = (consumedByMap, _, _) => consumedByMap,
+      rollbackEnd = (consumedByMap, _, _) => consumedByMap,
+    )
+
+  /** Keys are nodes under a rollback and values are the "nearest" (i.e. most recent) rollback node.
+    */
+  final def rolledbackBy: Map[NodeId, NodeId] = {
+    val rolledbackByMapUpdate
+        : ((Map[NodeId, NodeId], Seq[NodeId]), NodeId) => (Map[NodeId, NodeId], Seq[NodeId]) = {
+      case ((rolledbackMap, rollbackStack @ (rollbackNode +: _)), nodeId) =>
+        (rolledbackMap + (nodeId -> rollbackNode), rollbackStack)
+
+      case (state, _) =>
+        state
+    }
+
+    foldInExecutionOrder[(Map[NodeId, NodeId], Seq[NodeId])]((HashMap.empty, Vector.empty))(
+      exerciseBegin =
+        (state, nodeId, _) => (rolledbackByMapUpdate(state, nodeId), ChildrenRecursion.DoRecurse),
+      rollbackBegin = { case ((rolledbackMap, rollbackStack), nodeId, _) =>
+        ((rolledbackMap, nodeId +: rollbackStack), ChildrenRecursion.DoRecurse)
+      },
+      leaf = (state, nodeId, _) => rolledbackByMapUpdate(state, nodeId),
+      exerciseEnd = (state, _, _) => state,
+      rollbackEnd = {
+        case ((rolledbackMap, _ +: rollbackStack), _, _) =>
+          (rolledbackMap, rollbackStack)
+
+        case _ =>
+          throw new IllegalStateException(
+            "Impossible case: rollbackBegin should already have pushed to the rollback stack"
+          )
+      },
+    )._1
+  }
+
   /** Return the expected contract key inputs (i.e. the state before the transaction)
     * for this transaction or an error if the transaction contains a
     * duplicate key error or has an inconsistent mapping for a key. For
diff --git a/daml-lf/transaction/src/test/scala/com/digitalasset/daml/lf/transaction/TransactionSpec.scala b/daml-lf/transaction/src/test/scala/com/digitalasset/daml/lf/transaction/TransactionSpec.scala
index 2c406c31751..d792ef700b4 100644
--- a/daml-lf/transaction/src/test/scala/com/digitalasset/daml/lf/transaction/TransactionSpec.scala
+++ b/daml-lf/transaction/src/test/scala/com/digitalasset/daml/lf/transaction/TransactionSpec.scala
@@ -675,6 +675,363 @@ class TransactionSpec
         Map(key("key0") -> Some(cid0), key("key1") -> None, key("key2") -> Some(cid3))
     }
   }
+
+  "consumedBy and rolledbackBy" - {
+    "non-consuming transaction with no rollbacks" - {
+      "no nodes" in {
+        val builder = TransactionBuilder()
+        val transaction = builder.build()
+
+        transaction.consumedBy shouldBe Map.empty
+        transaction.rolledbackBy shouldBe Map.empty
+      }
+
+      "one node" - {
+        "with local contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (_, createNode0) = create(builder, parties, Some("key0"))
+
+          builder.add(createNode0)
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe Map.empty
+          transaction.rolledbackBy shouldBe Map.empty
+        }
+
+        "with global contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (_, createNode0) = create(builder, parties, Some("key0"))
+          val fetchNode0 = builder.fetch(createNode0, true)
+
+          builder.add(fetchNode0)
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe Map.empty
+          transaction.rolledbackBy shouldBe Map.empty
+        }
+      }
+
+      "multiple nodes" - {
+        "only create nodes" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (_, createNode0) = create(builder, parties, Some("key0"))
+          val (_, createNode1) = create(builder, parties, Some("key1"))
+
+          builder.add(createNode0)
+          builder.add(createNode1)
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe Map.empty
+          transaction.rolledbackBy shouldBe Map.empty
+        }
+
+        "create and non-consuming exercise nodes" - {
+          "with local contracts" in {
+            val builder = TransactionBuilder()
+            val parties = Seq("Alice")
+            val (_, createNode0) = create(builder, parties, Some("key0"))
+
+            builder.add(createNode0)
+            builder.add(exercise(builder, createNode0, parties, false))
+            val transaction = builder.build()
+
+            transaction.consumedBy shouldBe Map.empty
+            transaction.rolledbackBy shouldBe Map.empty
+          }
+
+          "with global contracts" in {
+            val builder = TransactionBuilder()
+            val parties = Seq("Alice")
+            val (_, createNode0) = create(builder, parties, Some("key0"))
+
+            builder.add(exercise(builder, createNode0, parties, false))
+            val transaction = builder.build()
+
+            transaction.consumedBy shouldBe Map.empty
+            transaction.rolledbackBy shouldBe Map.empty
+          }
+        }
+      }
+    }
+
+    "consuming transaction with no rollbacks" - {
+      "one excercise" - {
+        "with local contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (cid0, createNode0) = create(builder, parties, Some("key0"))
+
+          builder.add(createNode0)
+          val exerciseId0 = builder.add(exercise(builder, createNode0, parties, true))
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe
+            Map(cid0 -> exerciseId0)
+          transaction.rolledbackBy shouldBe Map.empty
+        }
+
+        "with global contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (cid0, createNode0) = create(builder, parties, Some("key0"))
+
+          val exerciseId0 = builder.add(exercise(builder, createNode0, parties, true))
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe
+            Map(cid0 -> exerciseId0)
+          transaction.rolledbackBy shouldBe Map.empty
+        }
+      }
+
+      "multiple exercises" - {
+        "with local contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (cid0, createNode0) = create(builder, parties, Some("key0"))
+          val (cid1, createNode1) = create(builder, parties, Some("key1"))
+
+          builder.add(createNode0)
+          builder.add(createNode1)
+          val exerciseId0 = builder.add(exercise(builder, createNode0, parties, true))
+          val exerciseId1 = builder.add(exercise(builder, createNode1, parties, true))
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe
+            Map(cid0 -> exerciseId0, cid1 -> exerciseId1)
+          transaction.rolledbackBy shouldBe Map.empty
+        }
+
+        "with global contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (cid0, createNode0) = create(builder, parties, Some("key0"))
+          val (cid1, createNode1) = create(builder, parties, Some("key1"))
+
+          val exerciseId0 = builder.add(exercise(builder, createNode0, parties, true))
+          val exerciseId1 = builder.add(exercise(builder, createNode1, parties, true))
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe
+            Map(cid0 -> exerciseId0, cid1 -> exerciseId1)
+          transaction.rolledbackBy shouldBe Map.empty
+        }
+      }
+    }
+
+    "consuming transaction with rollbacks" - {
+      "one rollback" - {
+        "with local contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (cid0, createNode0) = create(builder, parties, Some("key0"))
+          val (_, createNode1) = create(builder, parties, Some("key1"))
+
+          builder.add(createNode0)
+          builder.add(createNode1)
+          val nodeId0 = builder.add(exercise(builder, createNode0, parties, true))
+          val rollbackId = builder.add(builder.rollback())
+          val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId)
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe
+            Map(cid0 -> nodeId0)
+          transaction.rolledbackBy shouldBe
+            Map(nodeId1 -> rollbackId)
+        }
+
+        "with global contracts" in {
+          val builder = TransactionBuilder()
+          val parties = Seq("Alice")
+          val (cid0, createNode0) = create(builder, parties, Some("key0"))
+          val (_, createNode1) = create(builder, parties, Some("key1"))
+
+          val nodeId0 = builder.add(exercise(builder, createNode0, parties, true))
+          val rollbackId = builder.add(builder.rollback())
+          val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId)
+          val transaction = builder.build()
+
+          transaction.consumedBy shouldBe
+            Map(cid0 -> nodeId0)
+          transaction.rolledbackBy shouldBe
+            Map(nodeId1 -> rollbackId)
+        }
+      }
+
+      "multiple rollbacks" - {
+        "sequential rollbacks" - {
+          "with local wontracts" in {
+            val builder = TransactionBuilder()
+            val parties = Seq("Alice")
+            val (_, createNode0) = create(builder, parties, Some("key0"))
+            val (_, createNode1) = create(builder, parties, Some("key1"))
+
+            builder.add(createNode0)
+            builder.add(createNode1)
+            val rollbackId0 = builder.add(builder.rollback())
+            val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+            val rollbackId1 = builder.add(builder.rollback())
+            val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+            val transaction = builder.build()
+
+            transaction.consumedBy shouldBe Map.empty
+            transaction.rolledbackBy shouldBe
+              Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1)
+          }
+
+          "with global contracts" in {
+            val builder = TransactionBuilder()
+            val parties = Seq("Alice")
+            val (_, createNode0) = create(builder, parties, Some("key0"))
+            val (_, createNode1) = create(builder, parties, Some("key1"))
+
+            val rollbackId0 = builder.add(builder.rollback())
+            val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+            val rollbackId1 = builder.add(builder.rollback())
+            val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+            val transaction = builder.build()
+
+            transaction.consumedBy shouldBe Map.empty
+            transaction.rolledbackBy shouldBe
+              Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1)
+          }
+        }
+
+        "nested rollbacks" - {
+          "2 deep and 2 rollbacks" - {
+            "with local contracts" in {
+              val builder = TransactionBuilder()
+              val parties = Seq("Alice")
+              val (_, createNode0) = create(builder, parties, Some("key0"))
+              val (_, createNode1) = create(builder, parties, Some("key1"))
+
+              builder.add(createNode0)
+              builder.add(createNode1)
+              val rollbackId0 = builder.add(builder.rollback())
+              val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+              val rollbackId1 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+              val transaction = builder.build()
+
+              transaction.consumedBy shouldBe Map.empty
+              transaction.rolledbackBy shouldBe
+                Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1)
+            }
+
+            "with global contracts" in {
+              val builder = TransactionBuilder()
+              val parties = Seq("Alice")
+              val (_, createNode0) = create(builder, parties, Some("key0"))
+              val (_, createNode1) = create(builder, parties, Some("key1"))
+
+              val rollbackId0 = builder.add(builder.rollback())
+              val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+              val rollbackId1 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+              val transaction = builder.build()
+
+              transaction.consumedBy shouldBe Map.empty
+              transaction.rolledbackBy shouldBe
+                Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1)
+            }
+          }
+
+          "2 deep and 3 rollbacks" - {
+            "with local contracts" in {
+              val builder = TransactionBuilder()
+              val parties = Seq("Alice")
+              val (_, createNode0) = create(builder, parties, Some("key0"))
+              val (_, createNode1) = create(builder, parties, Some("key1"))
+              val (_, createNode2) = create(builder, parties, Some("key2"))
+
+              builder.add(createNode0)
+              builder.add(createNode1)
+              builder.add(createNode2)
+              val rollbackId0 = builder.add(builder.rollback())
+              val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+              val rollbackId1 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+              val rollbackId2 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId2 = builder.add(exercise(builder, createNode2, parties, true), rollbackId2)
+              val transaction = builder.build()
+
+              transaction.consumedBy shouldBe Map.empty
+              transaction.rolledbackBy shouldBe
+                Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1, nodeId2 -> rollbackId2)
+            }
+
+            "with global contracts" in {
+              val builder = TransactionBuilder()
+              val parties = Seq("Alice")
+              val (_, createNode0) = create(builder, parties, Some("key0"))
+              val (_, createNode1) = create(builder, parties, Some("key1"))
+              val (_, createNode2) = create(builder, parties, Some("key2"))
+
+              val rollbackId0 = builder.add(builder.rollback())
+              val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+              val rollbackId1 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+              val rollbackId2 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId2 = builder.add(exercise(builder, createNode2, parties, true), rollbackId2)
+              val transaction = builder.build()
+
+              transaction.consumedBy shouldBe Map.empty
+              transaction.rolledbackBy shouldBe
+                Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1, nodeId2 -> rollbackId2)
+            }
+          }
+
+          "3 deep" - {
+            "with local contracts" in {
+              val builder = TransactionBuilder()
+              val parties = Seq("Alice")
+              val (_, createNode0) = create(builder, parties, Some("key0"))
+              val (_, createNode1) = create(builder, parties, Some("key1"))
+              val (_, createNode2) = create(builder, parties, Some("key2"))
+
+              builder.add(createNode0)
+              builder.add(createNode1)
+              builder.add(createNode2)
+              val rollbackId0 = builder.add(builder.rollback())
+              val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+              val rollbackId1 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+              val rollbackId2 = builder.add(builder.rollback(), rollbackId1)
+              val nodeId2 = builder.add(exercise(builder, createNode2, parties, true), rollbackId2)
+              val transaction = builder.build()
+
+              transaction.consumedBy shouldBe Map.empty
+              transaction.rolledbackBy shouldBe
+                Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1, nodeId2 -> rollbackId2)
+            }
+
+            "with global contracts" in {
+              val builder = TransactionBuilder()
+              val parties = Seq("Alice")
+              val (_, createNode0) = create(builder, parties, Some("key0"))
+              val (_, createNode1) = create(builder, parties, Some("key1"))
+              val (_, createNode2) = create(builder, parties, Some("key2"))
+
+              val rollbackId0 = builder.add(builder.rollback())
+              val nodeId0 = builder.add(exercise(builder, createNode0, parties, true), rollbackId0)
+              val rollbackId1 = builder.add(builder.rollback(), rollbackId0)
+              val nodeId1 = builder.add(exercise(builder, createNode1, parties, true), rollbackId1)
+              val rollbackId2 = builder.add(builder.rollback(), rollbackId1)
+              val nodeId2 = builder.add(exercise(builder, createNode2, parties, true), rollbackId2)
+              val transaction = builder.build()
+
+              transaction.consumedBy shouldBe Map.empty
+              transaction.rolledbackBy shouldBe
+                Map(nodeId0 -> rollbackId0, nodeId1 -> rollbackId1, nodeId2 -> rollbackId2)
+            }
+          }
+        }
+      }
+    }
+  }
 }
 
 object TransactionSpec {