If you import your expenses from a credit card (as most companies do) Auto-Categorization will provide massive benefit to your company's workflow by automatically coding expenses to the proper GL as they come into your account.
Once configured according to your GL, Auto-Categorization detects the type of merchant for an expense based on it's Merchant Category Code (MCC) and associates that expense with the proper GL account. This saves employees from having to manually code expenses and provides admins with the peace of mind that the expenses coming in for approval are more reliably associated with the correct GL account. Best of all, this feature works for personal and company cards alike.
Auto-Categorization is configured in the policy so you will need to be a policy admin to set this up.
Setting up Auto-Categorization
- First, go to Admin and select the policy that you want to configure
- Go to the Categories tab and scroll down to Auto-Categorize
- Under the Category column, select the account that most closely associates with the merchant group for all groups that apply to expenses that you and your coworkers submit. If you are unsure, just leave the group Uncategorized and the expense not come in pre-categorized.
- You're well on your way to expense automation freedom!
Note: If you require more granular detail, the MCC Editor gives you even greater control over which MCC Codes are assigned to which Categories. The MCC Editor can be found just below the Auto-Categorize table.
Each time you categorize a merchant, the system will remember what you chose and will automatically apply that same category the next time that same merchant comes up again. When an expense has been categorized via implicit categorization, the category will be italicized.
You can always change the category and we'll try to remember that correction for next time. This is just another way we can save you time as you process your expenses.
Implicit Categorization will only apply to expenses you have not explicitly set a category for already, and any Expense Rules you have set up will always trump implicit categories. Notice in the example below that changing the category on one expense does not change it for any other expense that has an explicit category already assigned.
This built-in feature will only use the categories from the currently active policy on your account. You can change the active policy by clicking the blue account square and selecting the correct policy name.