diff --git a/pom.xml b/pom.xml
index a9f5520..f5081aa 100644
--- a/pom.xml
+++ b/pom.xml
@@ -65,6 +65,27 @@
                 <artifactId>maven-javadoc-plugin</artifactId>
                 <version>3.12.0</version>
             </plugin>
+
+            <!-- Test coverage report creation -->
+            <plugin>
+                <groupId>org.jacoco</groupId>
+                <artifactId>jacoco-maven-plugin</artifactId>
+                <version>0.8.14</version>
+                <executions>
+                    <execution>
+                        <goals>
+                            <goal>prepare-agent</goal>
+                        </goals>
+                    </execution>
+                    <execution>
+                        <id>report</id>
+                        <phase>test</phase>
+                        <goals>
+                            <goal>report</goal>
+                        </goals>
+                    </execution>
+                </executions>
+            </plugin>
         </plugins>
     </build>  
 </project>
diff --git a/src/main/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionFactory.java b/src/main/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionFactory.java
new file mode 100644
index 0000000..733b9c5
--- /dev/null
+++ b/src/main/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionFactory.java
@@ -0,0 +1,51 @@
+package edu.ntnu.idi.idatt2003.g40.mappe.service;
+
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Purchase;
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Sale;
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Share;
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Transaction;
+import edu.ntnu.idi.idatt2003.g40.mappe.utils.Validator;
+
+/**
+ * Responsible for creating concrete implementations of {@link Transaction}.
+ *
+ * <p>Uses the factory design pattern.</p>
+ * */
+public final class TransactionFactory {
+
+  private TransactionFactory() {
+
+  }
+
+  /**
+   * Creates a transaction based on transactionType, share, week and calculator.
+   *
+   * @param transactionType the type of transaction to create.
+   * @param share the share this transaction is about.
+   * @param week the week this transaction takes place in.
+   * @param calculator the calculator to use when calculating the transaction.
+   *
+   * @return an implementation of {@link Transaction}.
+   * */
+  public static Transaction createTransaction(final TransactionType
+                                                   transactionType,
+                                           final Share share,
+                                           final int week,
+                                           final TransactionCalculator
+                                                   calculator)
+          throws IllegalArgumentException {
+    if (transactionType == null
+            || share == null
+            || !Validator.VALID_POSITIVE_INT.isValid(Integer.toString(week))
+            || calculator == null) {
+      throw new IllegalArgumentException("Null or empty parameters for factory!");
+    } else {
+      return switch (transactionType) {
+        case SALE -> new Sale(share, week, calculator);
+        case PURCHASE -> new Purchase(share, week, calculator);
+        default -> throw new
+                IllegalArgumentException("Invalid transaction type!");
+      };
+    }
+  }
+}
diff --git a/src/main/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionType.java b/src/main/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionType.java
new file mode 100644
index 0000000..bb0ed32
--- /dev/null
+++ b/src/main/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionType.java
@@ -0,0 +1,18 @@
+package edu.ntnu.idi.idatt2003.g40.mappe.service;
+
+/**
+ * Enum used by the {@link TransactionFactory} to separate between
+ * the different transaction implementations.
+ * */
+public enum TransactionType {
+
+  /**
+   * {@link edu.ntnu.idi.idatt2003.g40.mappe.model.Sale}.
+   * */
+  SALE,
+
+  /**
+   * {@link edu.ntnu.idi.idatt2003.g40.mappe.model.Purchase}.
+   * */
+  PURCHASE;
+}
diff --git a/src/test/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionFactoryTest.java b/src/test/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionFactoryTest.java
new file mode 100644
index 0000000..6b25c35
--- /dev/null
+++ b/src/test/java/edu/ntnu/idi/idatt2003/g40/mappe/service/TransactionFactoryTest.java
@@ -0,0 +1,70 @@
+package edu.ntnu.idi.idatt2003.g40.mappe.service;
+
+import static org.junit.jupiter.api.Assertions.assertThrows;
+import static org.junit.jupiter.api.Assertions.assertTrue;
+
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Purchase;
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Sale;
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Share;
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Stock;
+import edu.ntnu.idi.idatt2003.g40.mappe.model.Transaction;
+import java.math.BigDecimal;
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+
+class TransactionFactoryTest {
+  private Stock testStock;
+  private Share testShare;
+  private Sale testSale;
+  private Purchase testPurchase;
+  private SaleCalculator testSaleCalculator;
+  private PurchaseCalculator testPurchaseCalculator;
+
+  @BeforeEach
+  void setUp() {
+    testStock = new Stock("AAPL", "APPLE INC.", new BigDecimal("100.00"));
+    testShare = new Share(testStock, new BigDecimal("10.0"), testStock.getSalesPrice());
+    testSaleCalculator = new SaleCalculator(testShare);
+    testSale = new Sale(testShare, 1, testSaleCalculator);
+    testPurchaseCalculator = new PurchaseCalculator(testShare);
+    testPurchase = new Purchase(testShare, 1, testPurchaseCalculator);
+  }
+
+  @Test
+  void factoryReturnsCorrectSale() {
+    Transaction sale2 = TransactionFactory.createTransaction(TransactionType.SALE, testShare, 1, testSaleCalculator);
+    assertTrue(equalTransactions(testSale, sale2));
+  }
+
+  @Test
+  void factoryReturnsCorrectPurchase() {
+    Transaction purchase2 = TransactionFactory.createTransaction(TransactionType.PURCHASE, testShare, 1, testPurchaseCalculator);
+    assertTrue(equalTransactions(testPurchase, purchase2));
+  }
+
+  @Test
+  void factoryThrowsErrors() {
+    assertThrows(IllegalArgumentException.class, () -> {
+      TransactionFactory.createTransaction(TransactionType.PURCHASE, null, 1, testPurchaseCalculator);
+    });
+
+    assertThrows(IllegalArgumentException.class, () -> {
+      TransactionFactory.createTransaction(TransactionType.PURCHASE, testShare, -1, testPurchaseCalculator);
+    });
+
+    assertThrows(IllegalArgumentException.class, () -> {
+      TransactionFactory.createTransaction(TransactionType.PURCHASE, testShare, 1, null);
+    });
+
+    assertThrows(IllegalArgumentException.class, () -> {
+      TransactionFactory.createTransaction(null, testShare, 1, testPurchaseCalculator);
+    });
+  }
+
+  private boolean equalTransactions(final Transaction transaction1, final Transaction transaction2) {
+    return (transaction1.getWeek() == transaction2.getWeek()
+            && transaction1.getShare() == transaction2.getShare()
+            && transaction1.getCalculator() == transaction2.getCalculator()
+            && transaction1.isCommited() == transaction2.isCommited());
+  }
+}
\ No newline at end of file