An AI GL coding agent reads each line description and maps it to your chart of accounts, separating items that look alike, such as a software licence and an implementation fee.
The agent reads each line's description and amount.
It compares the line with ledger account definitions.
It proposes accounts ordered by fit, with reasons.
A finance accountant chooses the account.
Prepaid or accrual cases are flagged for treatment.
The chosen account is saved with the invoice line.
It flags lines that may need a different accounting treatment, for example a multi-year prepayment that may belong in a prepaid account rather than expense.
It records the reasoning for every recommendation, so accountants can approve quickly and auditors can see why an account was used.
General ledger accuracy shapes every financial report, and the choice of account often depends on judgement, not just on the invoice text.
Lines such as services or misc give little to go on.
Licences, support and training may sit in separate accounts.
Whether a cost is capitalised depends on policy and thresholds.
Large charts include near-duplicate accounts that confuse new staff.
Fixing entries after close touches reports already shared.
The agent reads the description, quantity and price, and identifies the type of goods or service.
It matches the type to candidate accounts in your chart and ranks them.
It considers rules you provide, such as capitalisation thresholds or prepayment periods, and flags lines that may be affected.
It writes a short reason for the top account and shows the next best option.
The accountant's decision is stored so similar lines are handled consistently.
Bring a small sample and watch Flo work through it.
| Aspect | By hand | With the agent |
|---|---|---|
| Account choice | Accountants search the chart for the nearest account. | Ranked candidates appear with the wording that matched. |
| Prepaids | Annual fees are expensed in one month by habit. | Service period text is spotted and flagged for deferral review. |
| Account sprawl | Similar spend lands across several accounts. | Lines of the same nature are suggested into one account. |
| Policy fit | Capitalisation limits are applied from memory. | Lines near policy boundaries are flagged for the accountant. |
| Corrections | Wrong accounts are found at close and journaled. | Doubtful lines are flagged before posting. |
| If | Then | Who decides |
|---|---|---|
| Description clearly fits one account | Proposes that account | Accountant confirms |
| Description fits two accounts | Shows both with the deciding difference | Accountant picks |
| Line text shows a service period spanning months | Flags a possible prepaid | Accountant decides deferral |
| Line looks like equipment or software build | Flags a possible capital item | Finance controller decides |
| Account is restricted to certain entities | Removes it for other entities | None, rule applied |
| Vendor name suggests a different account than the text | Flags the conflict | Accountant decides |
The agent looks up the code against past lines and the PO. If still unclear it leaves the account open for the accountant.
The agent notes that a split may be needed for coding. The accountant asks the buyer for the breakdown.
The agent reads the new definition and includes it only after finance publishes it. The controller owns the timing.
The agent flags the charge for the intercompany process and does not choose a normal expense account. Finance decides treatment.
Talk it through with the team. We will map it to your steps and show where a person stays in control.
Write short plain definitions for the commonly used accounts.
Start with recurring spend types.
Turn on prepaid and capital flags once definitions are trusted.
Compare overrides with the definitions and refine them.
This shows how often an account choice has to be fixed later. A rising rate for a supplier or category points to a rule that needs attention.
Quick answers to what people ask most about GL coding.
Book a demoGL coding is choosing the general ledger account for each cost on an invoice, so spend is recorded under the right heading in the financial statements.
The agent recommends accounts and shows its reasoning. Posting is an accounting action that a person approves through your normal process.
It applies thresholds and rules you provide and flags lines that might be capital or prepaid. An accountant makes the call.
Your chart of accounts, past coded invoices, and optionally POs, contracts and policy notes. More context gives clearer recommendations.
Invoice coding is the step where each invoice, and each line on it, is given the accounting codes that say where the cost belongs, such as GL account, cost center, project and tax code.
→Cost center assignment is the step of deciding which department or team bears the cost of a purchase, so spend is charged to the right budget.
→Spend owner resolution is the step of identifying the person accountable for a given supplier, contract or invoice, so questions, approvals and budget decisions reach someone who can answer.
→Project coding is the step of tagging an invoice line to the project, grant, job or work order it supports, so costs can be tracked against that project's budget.
→Bring a small sample of real items. We will show what Flo handles on its own and where it hands over to your team.
