Expense Categorization Batch
Categorized transactions posted to accounting system. Missing receipts flagged. Weekly expense summary distributed. Vendor mapping rules updated.
Before you start
- Chart of accounts documented
- Vendor-to-category mapping rules
- Receipts and transaction records accessible
- Recent corporate card and bank transactions
- Receipts attached or available
- Approved category list
The steps
- Pull uncategorized transactions — Filter for transactions in the last week not yet categorized. Group by vendor for batch processing. Flag any transaction without a corresponding receipt for follow-up.
- Apply vendor-mapping rules — For known vendors, apply the documented category (e.g., AWS → Cloud Infrastructure, GitHub → Software Subscriptions). Apply tax categorization (deductible, partial, non-deductible).
- Categorize unknown vendors — For new or rare vendors, look up the vendor's business type, classify per chart of accounts. Add to the vendor-mapping rules for future runs. Building the rules library is a side effect of the SOP.
- Verify large transactions match documentation — For transactions above threshold (e.g., $500), verify: receipt attached, business purpose noted, project/department code if applicable. IRS audits hit unusual large items first.
- Flag personal or out-of-policy spend — Identify any transaction that looks personal (e.g., personal Amazon items, restaurant on a non-business trip). Flag to the cardholder for clarification or repayment.
- Post to the accounting system — Bulk post the categorized transactions. Confirm: GL entries are correct, project codes applied, no double-posting. Reconcile against the bank feed.
- Generate the weekly expense summary — Summarize: total expense by category, top vendors, anomalies, missing receipts. Distribute to controller and any department leads. Pattern-watching surfaces budget creep early.
If it goes wrong
Receipts pile up and miss tax filings
Hard SLA: missing-receipt flags must be resolved within 30 days. Beyond that, escalate to manager. Tax season scrambles cost more than weekly discipline.
Same vendor categorized differently month-to-month
Build the vendor-mapping rule the first time and stick to it. Inconsistent categorization breaks year-over-year reporting.
Personal spend slips through repeatedly
Cardholder-level pattern detection. If chronic, route to manager + HR. Card may need to be revoked or restricted.
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