How to do a GL cleanup before month-end close?
Short answer
The month's GL detail is checked for miscoded and incomplete entries, each one is fixed with a reclass entry, and the fixes are approved before close.
A GL cleanup is a pass over the month's general ledger detail before the books close. It finds entries that landed in the wrong account or are missing information and corrects them while the period is still open.
What a GL cleanup checks
- Vendors coded to more than one account: The same vendor in two expense accounts usually means two people made different calls on the same kind of purchase.
- Catch-all and suspense balances: Miscellaneous, Other expense, and suspense accounts should be near zero by close.
- Missing dimensions: An entry with the right account but no department, class, or project still breaks departmental reporting.
- Retired accounts in use: Activity on an inactive account or an old cost center means a vendor default or rule still points there.
- Entries in the wrong period: A bill dated next month, or an expense booked to the prior one, shifts results between periods.
How the cleanup is done
- Pull GL detail for the open period by account and vendor.
- Run each check and list the exceptions with the entry, its current account, and the account it belongs in.
- Fix the cause before the entry. Update the vendor default, retire the old account, or correct the rule so the same error doesn't return next month.
- Book reclassification journal entries that move miscoded amounts to the right account, and fill in missing dimensions.
- Have a reviewer approve the entries, then rerun the checks to confirm the exceptions cleared.
Running the cleanup in Ramp Stack
Ramp Stack agents follow the instructions saved in a skill, so the cleanup runs as the same checks every period.
| Step | What happens | Who |
|---|---|---|
| Save the coding guide as a skill | The common purchases and the account each one belongs to go into a skill under Knowledge > Skills. Accounting firms can use the same skill across clients. | The team |
| Add the cleanup to the close checklist | A close checklist task, set to recur each period, holds the cleanup and is assigned to a Stack agent. | The team |
| Read the ledger | The agent reads general ledger detail from the connected accounting system and builds a workbook of the entries that break the guide, such as a vendor that landed in more than one account. | Stack agent |
| Draft the fixes | For amounts sitting in the wrong account, the agent drafts reclassification journal entries. | Stack agent |
| Approve and post | The approver reviews the workbook and each entry. Approved entries post to QuickBooks Online, NetSuite, or Sage Intacct. | The task's approver |
| Trace it later | The Session Audit Log keeps the trail from each reclass back to the transactions behind it. | Reviewers and auditors |
Related questions
GL codes can differ for foreign and domestic charges to reflect variations in currency, tax rules, and entity structure. This distinction helps maintain accurate reporting and compliance across regions. Ramp automatically identifies the transaction’s country, currency, and entity, then applies the appropriate GL code and tax settings based on your accounting integrations.
Read moreYes. The vendor points to a likely account, the memo narrows it to the right one, and a reviewer confirms the suggested GL code before it syncs.
Read moreA single transaction can be split across multiple GL codes when it covers different departments, projects, or expense categories. This ensures each portion of the spend is recorded accurately and supports cleaner, more detailed financial reporting.
Read moreManagers usually cannot override accounting codes after month-end close to preserve data integrity. Any post-close adjustments must go through formal journal entries or finance approvals.
Read moreCoding rules typically apply only to new transactions after they are created. Past transactions may remain unchanged unless updated manually or through specific retroactive adjustments.
Read moreEach line is matched to an existing record first, then categorized, split, or excluded, and the queue is cleared before the books tie to the bank.
Read more