Overview
Categorizing expenses ensures accurate financial reporting and simplifies the approval process. Smartbills lets you assign a category (what the expense is for) and a department (which team it belongs to) on every expense.How to Categorize an Expense
1
Open the Expense
Navigate to Expenses in the sidebar, then click on the expense you want to categorize. The expense detail view opens.
2
Select a Category
Click the Category dropdown in the expense detail view. You can:
- Browse the full category list
- Type to search for a specific category
- Select the category that best describes the expense
3
Assign a Department (Optional)
If your organization uses departments, click the Department dropdown to assign one. Departments help track spending by team or cost center.
4
Save
Click Save to apply the category and department. The expense list updates to show the assigned values.
AI Auto-Categorization
Smartbills can automatically suggest categories based on the merchant name. For example, an expense from a known airline may be auto-assigned to Travel, while a restaurant receipt may default to Meals & Entertainment. Auto-categorization improves over time as you review and correct suggestions. The system learns from your choices to make better predictions in the future.Custom Categories
If the default categories do not fit your needs, administrators can create custom categories:- Go to Settings > Categories
- Click Add Category
- Enter a name, optional description, and GL code
- Save the new category
What’s Next?
Split an Expense
Divide an expense across multiple categories or departments
Create an Expense Report
Group categorized expenses into a report