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GL Coding on Invoices

GL coding is the process of assigning a General Ledger account code to each line item on an invoice. This ensures every expense is categorized correctly in your accounting system so your financial reports are accurate.

Three Ways Line Items Get GL Coded​

Mod AI provides three methods for coding line items, and they often work together:

1. AI Auto-Coding​

The AI automatically suggests GL codes for each line item based on:

  • Vendor history -- How you have coded this vendor's invoices in the past.
  • Line item descriptions -- What the line item says (e.g., "printer paper" suggests Office Supplies).
  • Existing patterns -- How similar line items across your organization have been coded.

AI suggestions appear pre-filled on line items. You can accept them as-is or change them.

2. Rule-Based Coding​

Rules you create can automatically assign GL codes. Rule-based coding overrides the AI's suggestion when a rule matches. For example, a rule that says "code all Staples invoices to account 5200" will always apply account 5200, regardless of what the AI would have suggested.

3. Manual Coding​

You select the GL account yourself from a searchable dropdown. This is useful for one-off invoices, new vendors without history, or situations where neither the AI nor your rules have the right answer.

How to Code a Line Item​

  1. Open the invoice detail page.
  2. Scroll to the Line Items section.
  3. Click the GL Account field on the line item you want to code.
  4. Search for the account by number or name, or browse the account hierarchy.
  5. Select the account. It is applied immediately.

Dimension Coding​

In addition to GL accounts, line items can have dimension values -- cost center, department, project, and other categorization fields your ERP uses. Dimension fields appear alongside the GL account field on each line item.

See Custom Dimensions for details on how dimensions work.

Split Coding​

Some invoices may need a single line item split across multiple GL accounts. For example, a consulting invoice might be 60% Operations and 40% Marketing. Mod AI supports split coding, allowing you to allocate portions of a line item to different accounts.

tip

Review the AI's GL code suggestions -- they improve over time as the system learns your coding patterns. The more invoices you process, the more accurate the suggestions become.

Learn More​

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