The Challenge: Uncategorized Expense Entries

In many organisations, uncategorized expense entries have become a persistent headache for Finance. Employees submit expenses with vague descriptions, missing cost centers, or simply select “Other” to get their claims through. Finance teams then spend days chasing missing information, decoding receipts, and manually assigning GL accounts and project codes. Month-end closes stretch out, and no one fully trusts the spend reports.

Traditional approaches—policy PDFs, training sessions, and manual review—are no longer enough. As transaction volumes grow across travel, procurement, and subscriptions, Finance can’t scale headcount just to read receipts. ERP and expense tools help enforce some rules, but they struggle with free-text descriptions, mixed-language entries, and messy receipt photos. Static rules-based engines break whenever vendors change formats or employees get creative with descriptions.

The business impact is significant. Misposted costs distort margins by product, customer, and project. Budget owners see spend data too late to act. Controllers lose days of productive time on low-value classification work instead of analysis. Poor expense visibility undermines expense control, hides policy violations, and slows decision-making—especially critical when cash and profitability are under pressure.

The good news: this problem is very solvable with today’s AI. By combining Gemini’s multimodal understanding (text + images) with your financial coding logic, you can dramatically reduce uncategorized entries and manual touchpoints. At Reruption, we’ve helped organisations build AI-first workflows around complex document and data processing. Below, we’ll walk through practical, finance-ready ways to apply Gemini to expense classification—without disrupting your core ERP landscape.

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Our Assessment

A strategic assessment of the challenge and high-level tips how to tackle it.

From Reruption’s work building AI-powered document and data workflows, we’ve seen that uncategorized expenses are almost never a tooling issue alone—they’re a process and design issue. Gemini is a powerful engine to interpret merchant names, texts, and receipt images, but its real value comes when you embed it into a clear expense control strategy, with the right guardrails around GL logic, cost centers, and approval flows.

Anchor Gemini in Your Finance Data Model, Not Just in the Expense Tool

Before you start sending receipts to Gemini, Finance needs a clear, documented data model: which GL accounts are allowed for which cost centers and projects, what typical spend patterns look like, and which categories are “high-risk” from a policy perspective. Without this backbone, even a strong AI model will produce inconsistent classifications.

Treat Gemini as an interpreter between messy real-world inputs and your structured chart of accounts. Define explicit mappings, priorities, and override rules that reflect how your controllers already think. This keeps AI outputs aligned with your accounting logic and reduces pushback from auditors and local finance teams.

Start with a Narrow, High-Volume Use Case

Rather than “AI for all expenses”, start with one narrow but high-volume area: for example travel expenses (flights, hotels, taxis) or software subscriptions. In these domains, merchant patterns and descriptions are relatively consistent, making it easier for Gemini to learn and for Finance to validate results.

This focus lets you set clear success metrics (e.g. “reduce uncategorized travel expenses from 25% to <5% in three months”) and gather feedback from a smaller group of employees and approvers. Once the pilot is stable and trusted, you extend the same patterns to other spend types.

Design for Human-in-the-Loop, Not Full Automation on Day One

For Finance leaders, the biggest risk is not that Gemini misclassifies a taxi ride—it’s losing control over the process. To manage adoption and risk, design a human-in-the-loop workflow first: Gemini proposes categories, cost centers, and policy flags; Finance (or managers) review and accept, edit, or reject.

This approach builds trust and gives you labelled feedback data to improve Gemini’s prompts and fine-tuning. Over time, you can set confidence thresholds—e.g. auto-accept when confidence > 0.9, route to review between 0.6–0.9, and block or escalate below 0.6—so automation grows where the model has proven reliable.

Prepare Your Team and Policies for AI-Augmented Expense Management

Introducing AI-driven expense classification changes who does what in the process. Controllers spend less time coding expenses and more time defining rules, testing samples, and monitoring anomalies. Employees get faster feedback on policy breaches. To avoid resistance, make these shifts explicit.

Update your expense policy with a short section on AI support: what Gemini does, how categories are suggested, what overrides are allowed, and how data is used. Train Finance staff on reading AI outputs, understanding confidence scores, and interpreting edge cases. The more comfortable they are, the faster they will lean into automation instead of bypassing it.

Build for Auditability, Traceability, and Compliance from Day One

For Finance, a powerful model is useless if it’s a black box. From the beginning, ensure that your Gemini integration stores the input (sanitised where needed), the suggested classification, the reasoning (where technically possible via prompts), the confidence score, and the final human decision.

This traceability gives auditors comfort and lets you run periodic back-testing: How often does Gemini match final postings? In which categories does it struggle? Combined with clear data protection and access controls, this helps you meet internal controls, compliance, and works council requirements while still reaping the efficiency gains.

Used deliberately, Gemini can turn uncategorized expense entries from a chronic irritant into a largely automated, auditable workflow. The key is not just calling an API, but aligning the model with your chart of accounts, policies, and people. At Reruption, we specialise in building these AI-first finance processes end-to-end—from proof-of-concept to production-grade integrations. If you want to see what Gemini could do on your real expense data, we’re ready to help you test it in a focused, low-risk way.

Build an AI system with us now!

We build a proof of concept for your problem for 5,000–8,000€. You get a tangible demo instead of slides with promises.

Real-World Case Studies

From Apparel Retail to Retail: Learn how companies successfully use Gemini.

H&M

Apparel Retail
In the fast-paced world of apparel retail, H&M faced intense pressure from rapidly shifting consumer trends and volatile demand. Traditional forecasting methods struggled to keep up, leading to frequent stockouts during peak seasons and massive overstock of unsold items, which contributed to high waste levels and tied up capital.

Solution

H&M deployed AI-driven predictive analytics to transform its approach, integrating machine learning models that analyze vast datasets from social media, fashion blogs, search engines, and internal sales. These models predict emerging trends weeks in advance and optimize inventory allocation dynamically.

Ergebnisse

  • 30% increase in profits from optimized inventory
  • 25% reduction in waste and overstock
  • 20% improvement in forecasting accuracy
  • 15-20% higher sell-through rates
  • 14% reduction in stockouts
Read case study →

Ford Motor Company

Automotive
In Ford's automotive manufacturing plants, vehicle body sanding and painting represented a major bottleneck. These labor-intensive tasks required workers to manually sand car bodies, a process prone to inconsistencies, fatigue, and ergonomic injuries due to repetitive motions over hours .

Solution

Ford addressed this by deploying AI-guided collaborative robots (cobots) equipped with machine vision and automation algorithms. In the body shop, six cobots use cameras and AI to scan car bodies in real-time, detecting surfaces, defects, and contours with high precision .

Ergebnisse

  • Sanding time: 35 seconds per full car body (vs. hours manually)
  • Productivity boost: 4x faster assembly processes
  • Injury reduction: 70% fewer ergonomic strains in cobot zones
  • Consistency improvement: 95% defect-free surfaces post-sanding
  • Deployment scale: 6 cobots operational, expanding to 50+ units
  • ROI timeline: Payback in 12-18 months per plant
Read case study →

Klarna

Fintech
Klarna, a leading fintech BNPL provider, faced enormous pressure from millions of customer service inquiries across multiple languages for its 150 million users worldwide. Queries spanned complex fintech issues like refunds, returns, order tracking, and payments, requiring high accuracy, regulatory compliance, and 24/7 availability.

Solution

Klarna partnered with OpenAI to deploy a generative AI chatbot powered by GPT-4, customized as a multilingual customer service assistant. The bot handles refunds, returns, order issues, and acts as a conversational shopping advisor, integrated seamlessly into Klarna's app and website.

Ergebnisse

  • 2/3 of all customer service chats handled by AI
  • 2.3 million conversations in first month alone
  • Resolution time: 11 minutes → 2 minutes (82% reduction)
  • CSAT: 4.4/5 (AI) vs. 4.2/5 (humans)
  • $40 million annual cost savings
  • Equivalent to 700 full-time human agents
  • 80%+ queries resolved without human intervention
Read case study →

PayPal

Online Payments
PayPal processes millions of transactions hourly, facing rapidly evolving fraud tactics from cybercriminals using sophisticated methods like account takeovers, synthetic identities, and real-time attacks. Traditional rules-based systems struggle with false positives and fail to adapt quickly, leading to financial losses exceeding billions annually and eroding customer trust if legitimate payments are blocked .

Solution

PayPal implemented deep learning models for anomaly and fraud detection, leveraging machine learning to score transactions in milliseconds by processing over 500 signals including user behavior, IP geolocation, device fingerprinting, and transaction velocity. Models use supervised and unsupervised learning for pattern recognition and outlier detection, continuously retrained on fresh data to counter new fraud vectors .

Ergebnisse

  • 10% improvement in fraud detection accuracy on AI hardware
  • $500M fraudulent transactions blocked per quarter (~$2B annually)
  • AUROC score of 0.94 in fraud models (H2O.ai implementation)
  • 50% reduction in manual review queue
  • Processes 10M+ transactions per hour with <0.4ms latency
  • <0.32% fraud rate on $1.5T+ processed volume
Read case study →

Mayo Clinic

Healthcare
As a leading academic medical center, Mayo Clinic manages millions of patient records annually, but early detection of heart failure remains elusive. Traditional echocardiography detects low left ventricular ejection fraction (LVEF <50%) only when symptomatic, missing asymptomatic cases that account for up to 50% of heart failure risks.

Solution

Mayo Clinic deployed a deep learning ECG algorithm trained on over 1 million ECGs, identifying low LVEF from routine 10-second traces with high accuracy. This ML model extracts features invisible to humans, validated internally and externally.

Ergebnisse

  • ECG AI AUC: 0.93 (internal), 0.92 (external validation)
  • Low EF detection sensitivity: 82% at 90% specificity
  • Asymptomatic low EF identified: 1.5% prevalence in screened population
  • GenAI search speed: 40% reduction in query time for clinicians
  • Model trained on: 1.1M ECGs from 44K patients
  • Deployment reach: Integrated in Mayo cardiology workflows since 2021
Read case study →

Best Practices

Successful implementations follow proven patterns. Have a look at our tactical advice to get started.

Use Multimodal Inputs: Combine Merchant, Text, and Receipt Images

Gemini’s strength for Finance is its ability to interpret multiple input types together. For each expense line, send merchant name, transaction amount, currency, employee free-text description, and a receipt image (where available). This helps Gemini distinguish, for example, between a hotel’s restaurant and room charges, or between personal and business items on the same receipt.

Structure your API payload to keep financial metadata separate from raw text, so prompts can explicitly reference them. Where your expense tool already extracts some OCR data from receipts, pass both the original image and the OCR text so Gemini can correct or enrich it.

Example Gemini prompt template (conceptual):
You are an expense classification assistant for the Finance department.
You receive: merchant, amount, date, employee description, and a receipt image.

Tasks:
1. Propose the most likely expense category (GL account) from this list: [...].
2. Propose cost center and project, if clearly inferable.
3. Flag potential policy violations (e.g. weekend spend, first-class travel).
4. Return a JSON object with fields: category_code, cost_center, project,
   policy_flags[], confidence_score, reasoning.

Now classify the following expense:
MERCHANT: {{merchant}}
AMOUNT: {{amount}} {{currency}}
DATE: {{date}}
DESCRIPTION: {{description}}
RECEIPT_IMAGE: <binary or URL>

Standardise Outputs with JSON Schemas and Confidence Thresholds

For reliable downstream posting, enforce a strict JSON schema for Gemini responses. Define required fields (e.g. category_code, confidence_score), permissible values (e.g. list of GL accounts), and default behaviours when the model is unsure.

On the consuming side (your middleware or expense tool), implement confidence thresholds. For example, if confidence_score >= 0.9, auto-apply the classification; if 0.7–0.9, route to a controller’s review queue with Gemini’s reasoning pre-filled; if < 0.7, keep the line as “uncategorized” but attach the suggestion for faster manual handling.

Expected Gemini response structure:
{
  "category_code": "6130_TRAVEL_HOTEL",
  "cost_center": "CC_102_MKT_DE",
  "project": "PRJ_4567_CAMPAIGN_Q4",
  "policy_flags": ["WEEKEND", "NO_APPROVAL_FOUND"],
  "confidence_score": 0.92,
  "reasoning": "Merchant is a hotel chain, date matches conference…"
}

Integrate Gemini into Existing Expense and ERP Workflows

Instead of building a separate tool, embed Gemini classification into the workflows your employees and controllers already use. Typical patterns include a middleware service between the expense app and ERP, or an API extension inside the expense management system.

Implementation sequence could look like this: (1) Employee submits an expense as usual; (2) Webhook triggers a Gemini API call with all inputs; (3) Middleware writes back suggested category, cost center, and flags into custom fields; (4) Approver or controller sees the pre-filled suggestions and can accept or adjust; (5) Final data posts to the ERP. This minimises change management and speeds up adoption.

Continuously Retrain Prompts with Feedback from Finance

Set up a simple loop where Finance feedback directly improves Gemini’s performance. Whenever a controller overrides a category or cost center, log both Gemini’s suggestion and the final choice. Regularly sample these overrides and update your prompt instructions (e.g. “for <merchant> in Germany, prefer cost center X unless description mentions Y”).

Even without model fine-tuning, iterative prompt refinement can move accuracy from “roughly helpful” to “good enough to automate most cases”. Schedule monthly prompt reviews with Finance and your technical team to adjust rules, add new merchant patterns, and refine policy checks.

Prompt refinement snippet:
Previous errors: Taxi rides for client visits were coded as "office travel".
Update instruction:
- If description contains words like "client", "customer", "meeting" and
  merchant type is taxi/ride-sharing, classify under
  6145_CLIENT_VISIT_TRAVEL instead of 6140_INTERNAL_TRAVEL.

Use Gemini for Policy Violation Detection and Anomaly Flags

Beyond basic categorisation, use Gemini to flag policy violations and anomalies in real time. For example, detect first-class or business-class fares from the ticket image, weekend or holiday expenses, or duplicate receipts submitted across different reports.

Design prompts that explicitly ask Gemini to reason about context: time of day, location vs. employee office, unusual amounts relative to typical spend for that merchant. Route flagged items into a specific queue with clear labels so controllers can quickly decide whether to approve, reject, or request more information.

Example policy check snippet:
In addition to classification, check for:
- Travel class (economy vs business/first) from the ticket or receipt.
- Weekend or public holiday dates.
- Multiple similar receipts in a short time window.
Return a "policy_flags" array with reasons, e.g. [
  "BUSINESS_CLASS_FLIGHT",
  "WEEKEND_EXPENSE"
]

Define KPIs and Dashboards to Track Impact

To prove value, track a small set of expense automation KPIs before and after Gemini deployment. Common metrics include: percentage of uncategorized lines, average time from submission to posting, manual touch rate per expense, and reclassification rate after monthly close.

Visualise these KPIs in your existing BI or ERP reporting, ideally by department and country. This helps you see where the model performs well, where additional training is needed, and where process issues (not AI) are causing delays. Use these insights to prioritise future improvements and justify further investment in AI-enabled Finance workflows.

Implemented pragmatically, Finance teams typically see 30–60% fewer uncategorized entries within the first 2–3 months, a 20–40% reduction in manual expense coding effort, and materially faster visibility into spend by cost center and project—enough to make a noticeable difference in month-end closing and budget steering.

Build an AI system with us now!

We build a proof of concept for your problem for 5,000–8,000€. You get a tangible demo instead of slides with promises.

Frequently Asked Questions

Gemini combines text and image understanding to interpret what an expense really represents. It reads merchant names, employee descriptions, transaction amounts, and even receipt photos, then maps them to your predefined expense categories, cost centers, and projects.

Instead of employees guessing a category or choosing “Other”, Gemini proposes a concrete GL account and coding suggestion in real time. Finance can review and adjust these suggestions, and over time you can automate high-confidence cases, dramatically reducing the number of uncategorized lines that reach controllers.

You typically need three capabilities: (1) a Finance lead who understands your chart of accounts and expense policies, (2) a technical owner who can work with APIs or your expense tool’s integration layer, and (3) someone to handle security, data protection, and access control.

You do not need a large data science team to get started. A small cross-functional squad—Finance, IT, and one engineer—can set up a first Gemini-based classification pilot in a few weeks, especially if you use existing middleware or iPaaS tools as the integration backbone.

For a focused use case (e.g. travel expenses), organisations usually see tangible results within 4–8 weeks. In the first weeks, you’ll configure prompts, wire up the API, and run Gemini in suggestion-only mode alongside your current process.

Once Finance is comfortable with the quality of suggestions, you can start auto-applying high-confidence classifications. At that point, you should see a clear reduction in uncategorized entries and manual coding time. Expanding to additional spend categories is typically faster, because you can reuse the same technical foundation and only adapt the financial logic.

Cost has two components: (1) Gemini usage costs (API calls, which are typically low per transaction) and (2) your one-time integration and change effort. For most mid-sized and larger organisations, the main driver is internal or partner implementation time, not the model usage cost.

ROI comes from reduced manual classification work, faster month-end closing, fewer reclassifications, and better visibility into spend (enabling concrete savings actions in travel, procurement, and subscriptions). In practice, even a modest reduction of a few FTE-days per month plus avoided mispostings and better spend steering usually outweighs the ongoing cost of running Gemini.

Reruption supports you end-to-end, from idea to working solution. With our AI PoC offering (9,900€), we first validate that Gemini can reliably classify your real expense data: we define the use case, build a prototype that connects to sample receipts and ledger data, and measure accuracy, speed, and cost per run.

Beyond the PoC, our Co-Preneur approach means we embed with your Finance and IT teams, design the target workflow, implement the Gemini integration, and help set up KPIs, monitoring, and governance. We don’t stop at slides—we build and ship the actual automation inside your P&L so that uncategorized expenses become the exception, not the norm.

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