# Expense Report Categorization Checklist

> Review an expense report entry by entry: category, required fields, receipts, duplicates and totals. The post gives a prompt for Claude or ChatGPT.

## What this check is for

An expense report can hold dozens of entries. Before the approver signs the report, the approver must answer three questions. Is every entry in the right category? Is every entry complete and supported by documents? Do the category totals add up to the report total?

This checklist goes through those questions one entry at a time and ends with a summary by category. Use it for reimbursement approvals, month-end expense audits or budget tracking.

## Set the categories first

Before you start, agree on the category list. Then people (and any AI tool that you use) put the same expense in the same category. Use the expense policy or the chart of accounts of your company. Here is a small example:

| Category | Includes | Edge cases to decide up front |
|---|---|---|
| Airfare and rail | Tickets, seat and baggage fees | Change fees on a cancelled trip |
| Lodging | Room and room taxes | Meals and parking charged to the room |
| Ground transport | Taxis, ride share, car rental, parking | Mileage in a personal car |
| Meals | Meals while traveling or with clients | Team meals, tips not on the receipt |
| Software and subscriptions | Monthly tools and licenses | Annual plans paid on a personal card |
| Office supplies | Small equipment and supplies | Items above your equipment limit |
| Other | Anything that fits nowhere else | Use it rarely. Ask for a note |

Write one sentence for each edge case (an expense that can fit two categories). A rule such as "Hotel meals go to Meals, not Lodging" prevents many arguments later.

## The checklist

Go through every entry on the report:

1. Make sure that every report line has a receipt and that every attached receipt has a report line. Look for receipts with no matching line.
2. Make sure that the date is present, inside the report period and not later than the report date.
3. Make sure that the entry names the vendor and that you can recognize the vendor. The name on a card statement is often different from the shop name on the receipt.
4. Make sure that the description and the business purpose say what the employee bought and why. "Lunch" alone is not enough. "Lunch with two client staff, project kickoff" is enough.
5. Choose one category from your list that fits both the vendor and the description. Split mixed bills, such as a hotel folio (the itemized hotel bill) with room and meals.
6. Make sure that the amount matches the receipt. For foreign currency, make sure that the entry shows the original amount, the rate used and the converted amount.
7. Make sure that the receipt is attached, readable and for the same amount. Your policy can reject a card slip without item details.
8. Make sure that the same vendor, date and amount appear only once, on this report and on earlier reports. A common duplicate is a card slip and an itemized receipt that the employee entered as two lines.
9. Compare the entry with your policy limits. Examples are daily meal limits, preapproval rules and items that your policy does not reimburse.

Then calculate a subtotal for each category and its share of the report total. Make sure that the sum of the category subtotals equals the report total.

Some US employers reimburse under an accountable plan (a reimbursement plan that meets IRS rules). For these employers, [IRS Publication 463](https://www.irs.gov/publications/p463) explains the necessary records. You usually need documentary evidence, such as receipts. The exceptions include expenses under $75, other than lodging. Good evidence shows the amount, date and place of the expense and what the expense was for.

The same publication treats 60 days as a reasonable period to account for an expense after you pay it. It treats 120 days as a reasonable period to return excess reimbursement. Your own policy can be stricter than these rules.

## Record the result

Use an entry sheet for the details:

| # | Date | Vendor | Description | Category | Amount | Receipt | Flag |
|---|---|---|---|---|---|---|---|
| 1 | | | | | | Yes / No | |
| 2 | | | | | | Yes / No | |

Use a category summary for the approver:

| Category | Entries | Subtotal | Share of total |
|---|---|---|---|
| Lodging | | | |
| Meals | | | |
| Total | | | 100% |

Under the summary, list the flags (the problems that you marked) with their entry numbers. Examples of flags are a missing receipt, an unclear purpose, a possible duplicate or an amount over the limit. Then the employee can fix all flags in one pass.

## Use this checklist with Claude or ChatGPT

An AI assistant can read a report and its receipts. It can suggest a category for each entry and flag gaps. Before you upload, remove card numbers, home addresses and other personal details that the review does not need. Also read the data settings of your workspace. They tell you how the tool stores and uses uploaded files.

Attach the report and the receipts. Then paste your category list and this prompt:

```text
Review the attached expense report and receipts with this checklist.
Use only the categories listed below.

Categories: [paste your category list and edge-case rules]

1. List every entry: date, vendor, description, amount, currency.
2. Match each entry to a receipt. List receipts with no entry and
entries with no receipt.
3. Flag entries missing a date, vendor, description, category or
amount, or with a receipt amount that differs.
4. Assign one category to each entry and give a one-line reason.
Split mixed bills and say how.
5. Flag possible duplicates (same vendor, date and amount).
6. Give a subtotal and percentage for each category, and check that
the subtotals add up to the report total.

For each entry, show your reasoning and mark it OK, Flag or Cannot tell.
At the end, list everything you could not read or determine.
Do not guess amounts or dates.
```

AI tools can choose a category that sounds right but breaks your rules. They can also misread amounts on faded receipts. Recalculate the subtotals in a spreadsheet. Review every flagged entry yourself. Also review a few entries that the tool marked OK. The approver makes the final decision.

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