How to assign the correct GL codes to every transaction
Accurate GL coding is the foundation of clean books and confident reporting. When every transaction is assigned to the right account, teams can close faster, avoid reclassifications, and maintain compliance across entities. Without consistent coding, finance teams spend hours correcting errors, reconciling mismatched data, and explaining discrepancies during audits.
With the right setup, companies can:
- Maintain accurate financial statements and audit-ready records.
- Automate expense categorization for recurring and complex transactions.
- Reduce manual review and rework at month-end.
- Ensure consistency across departments, entities, and reporting periods.
Below are answers to the most common questions finance teams face around GL coding and automation.
Can a single transaction be split into multiple GL codes?
A 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. Ramp handles split transactions automatically, allowing you to assign multiple GL codes within a single expense
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How do recurring SaaS charges get auto-coded each month?
Recurring SaaS charges are auto-coded through connected bank feeds, vendor recognition, and past transaction patterns. Each charge is matched to the correct GL code automatically, keeping monthly bookkeeping consistent and reducing manual effort. On Ramp, recurring charges are recognized instantly from your connected cards and accounting system.
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What happens if two rules match the same transaction?
When two automation rules apply to the same transaction, the system reviews both to determine which one should take priority. The goal is to apply the most specific and relevant rule to ensure each transaction is coded accurately, without duplication or conflict. In Ramp, rule priority is determined by order and specificity.
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Can GL codes be applied differently for foreign vs. domestic charges?
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.
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How are tax-deductible vs. non-deductible expenses coded?
Tax-deductible and non-deductible expenses are coded under separate GL accounts to ensure accurate tax reporting. This distinction helps you track eligible deductions and maintain compliance during audits. Ramp automatically applies the correct GL code based on your accounting integrations and internal rules.
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Do coding rules apply retroactively to past transactions?
Coding rules typically apply only to new transactions after they are created. Past transactions may remain unchanged unless updated manually or through specific retroactive adjustments.
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Can managers override accounting codes after month-end close?
Managers 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.
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Assistant Controller, Sana Benefits
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VP of Finance, Poshmark
