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.
Many businesses track international transactions separately to account for currency differences, local taxes, and region-specific reporting needs. Assigning distinct GL codes for each category helps maintain clarity in global spend and ensures compliance with regional accounting standards.
How GL codes can differ by transaction region
GL codes can differ by transaction region based on how expenses are categorized within your accounting framework.
Domestic charges often align with standard expense accounts such as travel, utilities, or software. Foreign transactions, on the other hand, may be linked to specialized codes that account for currency, tax, or jurisdictional reporting requirements. This separation helps maintain accuracy when financial data spans multiple countries or subsidiaries.
Regional GL structures often include sub-accounts by country or currency so that every transaction carries its origin context. A marketing expense in the United States might map to one account, while the same spend in the United Kingdom connects to a VAT-inclusive category. This setup helps both local and consolidated reporting stay accurate.
Manual reconciliation continues to be one of the costliest areas in global accounting, with large firms losing nearly $5 billion each year to inefficiencies and duplicate adjustments. Clear regional coding helps reduce the manual review burden that drives those costs and gives finance teams a cleaner view of global spend.
Factors that influence regional GL coding
Regional GL coding depends on several variables that shape how expenses are recorded across countries and entities. Each factor ensures that financial reporting aligns with both local standards and global consolidation requirements.
Factor | What it means | Impact on GL coding |
|---|---|---|
Currency differences | Foreign transactions often require conversion to a base currency, and exchange rate movements can create gains or losses | Records FX gains or losses accurately |
Tax and compliance | Each country applies different tax laws such as VAT, GST, or import duties | Keeps filings compliant and consistent |
Entity structure | Global organizations maintain separate legal entities across regions | Supports local books and global rollups |
Cost center ownership | Departments or teams in different regions may share expenses unevenly | Allocates costs fairly across teams |
Accounting standards | Regional differences in GAAP or IFRS affect how income and expenses are recognized | Ensures regional compliance in recognition |
Payment methods | Cross-border transactions often include additional bank fees or currency conversion costs | Improves accuracy in reconciliation |
How Ramp handles foreign and domestic coding
Ramp manages both foreign and domestic transactions by linking each expense to the correct entity and currency before it reaches your accounting system. Every transaction includes two values: The original charge in the vendor’s currency and the converted amount in your entity’s functional currency. This dual recording ensures that your books reflect both the true cost of international purchases and the impact of exchange rate movements.
When a transaction occurs in a foreign currency, Ramp automatically converts it based on the exchange rate at the time of posting. If the settlement rate later changes, the platform tracks the variance as a foreign exchange gain or loss. This accuracy keeps your ledgers aligned with your reporting standards and minimizes manual adjustments.
Ramp’s integrations with accounting systems, such as NetSuite and QuickBooks, automatically maintain tax codes, inter-company journals, and FX adjustments. Each entity retains its local currency settings, while consolidated reports display in USD for consistency.
“Ramp is the only vendor that can service all of our employees across the globe in one unified system. They handle multiple currencies seamlessly, integrate with all of our accounting systems, and thanks to their customizable card and policy controls, we're compliant worldwide.” ”
Brandon Zell
Chief Accounting Officer, Notion
“When our teams need something, they usually need it right away. The more time we can save doing all those tedious tasks, the more time we can dedicate to supporting our student-athletes.”
Sarah Harris
Secretary, The University of Tennessee Athletics Foundation, Inc.
“Ramp had everything we were looking for, and even things we weren't looking for. The policy aspects, that's something I never even dreamed of that a purchasing card program could handle.”
Doug Volesky
Director of Finance, City of Mount Vernon
“Switching from Brex to Ramp wasn’t just a platform swap—it was a strategic upgrade that aligned with our mission to be agile, efficient, and financially savvy.”
Lily Liu
CEO, Piñata
“With Ramp, everything lives in one place. You can click into a vendor and see every transaction, invoice, and contract. That didn’t exist in Zip. It’s made approvals much faster because decision-makers aren’t chasing down information—they have it all at their fingertips.”
Ryan Williams
Manager, Contract and Vendor Management, Advisor360°
“The ability to create flexible parameters, such as allowing bookings up to 25% above market rate, has been really good for us. Plus, having all the information within the same platform is really valuable.”
Caroline Hill
Assistant Controller, Sana Benefits
“More vendors are allowing for discounts now, because they’re seeing the quick payment. That started with Ramp—getting everyone paid on time. We’ll get a 1-2% discount for paying early. That doesn’t sound like a lot, but when you’re dealing with hundreds of millions of dollars, it does add up.”
James Hardy
CFO, SAM Construction Group
“We’ve simplified our workflows while improving accuracy, and we are faster in closing with the help of automation. We could not have achieved this without the solutions Ramp brought to the table.”
Kaustubh Khandelwal
VP of Finance, Poshmark
