An AI spend categorization agent reads vendor names, line descriptions, GL codes and PO text and proposes a category for every transaction.
Invoice and card lines arrive from finance systems
Agent reads vendor, description and amount
Agent assigns a category with a stated reason
Low-confidence lines are queued with options
A person confirms or corrects the category
Corrected lines update the category history
It applies your taxonomy rules and learns from corrections, so the same vendor or phrase is treated the same way next time.
It lists uncertain lines for review with its reasoning, and produces a view of what share of spend is classified.
Spend data arrives from several systems with free-text descriptions and inconsistent coding. Without clean categories, no later analysis can be trusted.
The same vendor is coded to three different GL accounts by three teams.
Lines such as 'services' or 'misc' hide what was bought.
A large supplier sells several things, so a vendor-level label misleads.
Analysts spend days assigning categories before they can start analysis.
Rules change and old data is never reclassified.
Collect transactions with vendor, description, amount, GL code and PO text.
Group variants of the same vendor and clean the line text.
Match each line to your taxonomy using description, vendor history and context.
Send low-confidence or conflicting lines to an analyst with the reasons.
Record decisions so they apply to similar lines and past data.
Bring a small sample and watch Flo work through it.
| Aspect | By hand | With the agent |
|---|---|---|
| Coverage | Only the largest vendors get categorised | Every line is classified, with uncertain ones queued |
| Consistency | The same vendor lands in different categories by analyst | One vendor is categorised the same way unless the line says otherwise |
| Description reading | Free-text lines are skimmed or ignored | Line descriptions are read and used to choose the category |
| Corrections | Fixes are made in a sheet and forgotten | Corrections update the rules for later lines |
| Timeliness | Categorisation is done once a year for reports | New lines are classified as they arrive |
| If | Then | Who decides |
|---|---|---|
| Vendor sells only one kind of thing | Assigns that category to all its lines | Analyst reviews the mapping once |
| Vendor sells several kinds of things | Classifies from the line description | Analyst reviews uncertain lines |
| Line description is blank or vague | Queues the line with likely options | Analyst chooses |
| An analyst corrects a category | Applies the correction to similar lines and the vendor rule | Taxonomy owner approves a rule change |
| Line matches no category in the taxonomy | Proposes a new category and does not force a fit | Taxonomy owner decides |
| Amount is unusually large for the category | Flags the line for a closer look | Category manager checks |
The agent notices lines that no longer fit the vendor's usual category. An analyst decides whether to split the mapping.
The agent proposes a split by line. The analyst confirms how the amounts are divided.
When categories change, the agent suggests how existing lines map to the new structure. The taxonomy owner approves the remap.
The agent keeps flagged lines out of broad views. Finance decides who can see them.
Talk it through with the team. We will map it to your steps and show where a person stays in control.
Agree the category list and how detailed it should be.
Run on last quarter and compare with the analyst's own labels.
Classify new lines daily and review the uncertain queue weekly.
Phase out the old spreadsheet once corrections feed the rules.
It indicates how much of your data is ready for analysis. Watch the share left in 'other' or awaiting review.
Quick answers to what people ask most about spend categorization.
Book a demoIt is the sorting of purchases into a consistent set of categories so that spend can be compared across vendors, teams and time.
No. It applies the taxonomy you set and proposes changes only when you ask for suggestions.
It flags them with its reasoning and waits for an analyst's decision, then applies that decision to similar lines.
Transaction lines with vendor, description and amount, plus GL and PO text where available.
Savings tracking is the practice of recording negotiated or identified savings and following them through to what is actually paid.
→UNSPSC classification is the assignment of a standard United Nations Standard Products and Services Code to each item or spend line, so that purchases can be compared across systems and organisations.
→Spend visibility is the ability to see what the organisation buys, from whom, on which contract and under whose budget.
→Off-contract spend is money paid to a vendor or at a price that falls outside an agreement the organisation has negotiated.
→Bring a small sample of real items. We will show what Flo handles on its own and where it hands over to your team.
