Accounting rules and automation

Table of Contents

• Overview
• Automate coding with AI
• Suggested coding
• Suggested rules
• Automate coding with rules
  • Auto-coding 
  • Pre-coded cards
• Accounting rules
• Advanced accounting rules
• Accounting rules hierarchy
• Automate coding with settings
  • Default coding
  • Why set default values?
  • How to set up default values
  • Require employees to code
• Conditional filtering
• Editing tools
  • Bulk editing
• Frequently Asked Questions (FAQs)

Overview

For finance professionals, quick book closures and insightful data are vital. Here's how Ramp amplifies your accounting prowess:

• Seamless integration: Ramp seamlessly syncs with your accounting system, ensuring that all expenses—bills, reimbursements, or card charges—are accurately categorized.

• Swift book closings: With advanced tools, including rules and suggestions, classify expenses and close your books faster than ever.

• Precision first: By leveraging multiple data points, rules, and past classifications, Ramp ensures accurate data without compromising speed. We prioritize getting it right the first time so each sync to your system is flawless.

For an overview of how Ramp accounting works, check out this article.

Automate coding with AI 

Using AI and historical data, Ramp's Suggested Coding & Rules offer intelligent transaction suggestions, simplifying categorization and enhancing accuracy.

Suggest coding 

Suggested Coding references past expense categorizations to predict the suitable General Ledger (GL) account. It assesses components like the transaction's memo, receipt, user, and location. These AI-generated suggestions appear in a dropdown menu, streamlining the selection process for both employees and accountants.

Note: Transactions are only automatically coded with suggestions if they don't have a category required by the submission policy.

As suggestions get accepted, the system learns, optimizing future recommendations.

Suggested rules

These rules will work just like other rules on Ramp's platform. There is nothing functionally different about them. The only difference is that we are suggesting these rules to the customer based on their behavior when coding transactions.

Customers will receive rule suggestions on the Accounting tab. They will be able to create the rules instantaneously or review the rule we are suggesting.

When a customer clicks "Review rule," the drawer below will open. This drawer will display the rule that Ramp will create on their behalf. It will provide detail on the rule that Ramp is suggesting.

Automate coding with rules

Auto-coding

Ramp will now automate the coding of your General Ledger Account for transactions. We use a combination of coding history and AI to accurately predict the code for the General Ledger Account.

Note: Ramp will only automatically code transactions with suggestions if there is no Category required by the submission policy

Pre-coded cards

Pre-coding cards are a powerful tool for automating specific transaction categorizations. You can even automatically mark transactions on these cards as "ready" once they meet all necessary criteria. This not only speeds up workflows but also ensures transactions are coded accurately.

Benefits:

• Purpose-specific categorization: Create cards for distinct purposes or merchants and have transactions auto-categorized.
• Workflow efficiency: Transactions are coded swiftly while ensuring they align with your coding standards.

Use cases:

1. Per diem card: Auto-categorize all transactions to 'Meals & Entertainment' or your specified GL account.
2. Merchant-specific card: For a Slack card, auto-set Category to 'Dues and Subscriptions', Merchant as 'Slack', and other classifications.

How to set up

For new cards:

1. Go to the Cards tab and click the Issue spend button.
2. Scroll to the Accounting section and select the appropriate accounting info. 

For existing cards:

1. Go to the Cards tab and select an existing card.
2. Click the Edit button. 
3. In the Advanced section, click Transaction coding rules. 
4. Click the Add button and select the appropriate accounting info.

Please note that at this time, card level rules are only supported for single-select fields. Rules for free text fields are not supported at this time.

Also, you can also set up card programs to pre-code and expedite book closures:

• Spend Programs -> New Spend Program -> Follow Product Flow. 

Accounting rules

Admins and bookkeepers amplify your efficiency with Ramp's tailored rules, allowing you to map any Ramp field directly to any accounting provider field.

• Accessing accounting rules:

  • Navigate to the Accounting page and click on the "Settings" button located at the top-right of the page. 
  • Choose "Accounting Automation."

• View current rules & add new ones:

  • Here, you'll find a list of your active mapping rules.
  • Click "Create Rule" to initiate a new rule setup.
  • Upon selecting "Create Rule," choose any Ramp input field (like Category, Merchant, Location, or Department) and map it to a corresponding accounting provider output field.

• Implementing & applying rules:

  • Dive into the rule's specifics with "Go to Rule" and establish 1 to 1 field mappings.
  • Remember, these mappings will only activate once you save the rule.
  • After saving, the system will automatically apply your rules to all un-synced transactions and reimbursements. However, existing synced transactions in your accounting provider won't be updated.

• Audit & review:

  • To scrutinize which rule was implemented on a particular transaction, hover over the lightning bolt icon and click "View Rule." This action will provide a direct view of the applied rule for the specific transaction field.

Ready to dive in? Click here to get started.

Advanced accounting rules

Ramp's advanced accounting rules pave the way for an unmatched accounting experience, allowing businesses to craft customized workflows suited to their specific needs.

• Accessing advanced rules:

  1. Navigate to the Accounting page and click on the "Settings" button located at the top-right of the page. 
  2. Choose "Accounting Automation."
  3. Click Advanced rules tab. 

• Initiate rule creation:

  1. Click on "Create an Advanced Rule."
  2. Begin by selecting Ramp inputs, such as Card Merchant.
  3. Add more Ramp inputs if needed. Note that within a single Ramp input, the logic is based on 'OR' (e.g., Seamless, GrubHub, OR DoorDash). However, when using multiple inputs, it follows an 'AND' logic (e.g., aforementioned merchants AND Growth department).

• Utilizing Department/Location-specific logic:

  • If your GL categorization involves departments or if departments/locations influence outcomes, you can craft a single rule for all departments.
  • Once you pick a department or location, you'll be prompted to apply the rule across all fields (see the illustrative image below).
  • After selecting "Yes, Set Up," you can set coding criteria for every department.

• Naming and finalizing the rule:

  • Once your rule's logic is in place, name it. We recommend a descriptive title for easy reference.
  • After saving, you'll return to the main rule creation section, where you can view all your active rules. Plus, a simple click on the dropdown arrow reveals a rule preview.

• Audit and review:

  • As with the basic rules, any field that meets these rule criteria will display a lightning bolt icon. Clicking on this icon takes you directly to the applied rule, ensuring you always have clarity on the categorization process.

Ready to dive in? Click here to get started.

Accounting rules hierarchy

The priority in which accounting rules are applied can greatly influence your financial outcomes. Here's how Ramp structures the hierarchy:

1. Card & card program rules:

   • These are paramount and will always supersede other rules.

2. Advanced rules:

   • These are prioritized over standard mapping rules.
   • Within Advanced Rules, more specific rules (having more input fields) take precedence.
     • E.g., A rule with both "Merchant" and "Department" inputs will be prioritized over one with only "Category".

3. Rule application based on output fields:

   • GL account (accounting category): Merchant mappings are first followed by category mappings, followed by other fields.
   • Accounting provider vendor: Merchant mappings take precedence over other fields.
   • Other accounting provider outputs: Department mappings are prioritized, followed by Location, then Merchant, and lastly, Category mappings.

4. Noteworthy:

   • If two input fields (e.g., Category and Merchant) aim to map to the same output field, the more specific mapping is chosen.
   • It's possible for more than one rule to apply to a particular transaction.
   • If a rule or advanced rule is deleted, the set field will be removed from all previously affected non-synced transactions. If there is a less specific rule, it will map to that field. If there is no other related rule, it was reset to the default value.

Automate coding with settings  

Save time closing your books by requiring employees to code their own transactions―many hands make light work, you know. Ramp cardholders can be required to add accounting fields like category, location, vendor, billable, etc., to their own transactions.

How do I require employees to code their own transactions? 

Conditional filtering 

Customers can create rules to dynamically change the field options that are available to users. The image below illustrates how to accomplish this with Conditional Filtering.

Editing tools

Bulk editing

Boost your efficiency with Ramp's bulk edit and mark-as-ready features. These tools help fast-track the transaction coding process, ensuring you spend less time on repetitive tasks and more time on strategic decision-making.

1. Select transactions:

   • Click the checkbox on the top left to select every transaction on the current page.
   • Tip: Filter using the tools at the top to pinpoint specific transaction types or criteria.

2. Bulk edit:

   • Once transactions are selected, a bottom pop-up appears, allowing you to edit the 'Category' for all selected transactions simultaneously.
   • Edit dates, descriptions, accounting categories, and bulk retry sync
   • For more options like 'Location' or other fields, click the 3 dots next to “Mark as Ready”.

3. Mark as ready across multiple pages:

   • Ramp provides the flexibility to select transactions across various pages and mark them as ready in a batch.

4. Confirmation:

   • After coding the transactions, confirm by clicking the “Mark as Ready” button.

Maximize use of filters:

For best results with bulk editing:

• Filter to specific criteria, such as all 'Amazon' transactions.
• Apply bulk changes, like updating the location for all selected transactions.
• Remember: You can filter by almost any criterion on the Accounting tab, such as transactions with missing fields, statement date, merchant, and more.

Frequently Asked Questions (FAQs)

How does Ramp figure out how to suggest rules?
Ramp views how you've synced transactions in the past and will suggest a rule when we have sufficient confidence that it may be beneficial. In other words, suggested rules can be leveraged to optimize the repetitive tasks you need to complete.

Why am I not receiving any suggested rules?
Ramp will suggest rules once our model has a sufficient amount of data to ensure we can provide suggestions that are beneficial to optimizing your workflow.

How can I turn these suggested rules off?
We aren't able to turn rule suggestions off, however, you do have the ability to ignore our suggestions on a case by case basis!

How do I remove a suggested rule that I accidentally accepted?
Just like other rules! Simply go to "Settings" on the Accounting tab. Then go to "Accounting Automation." Once on this page, you will be able to edit any accounting rules, including the ones that were initially suggested.