Automatic Posting with Type Codes

What is a Type Code?

A type code – also known as a Merchant Category Code (MCC) – is an international standard four-digit code. The code is used by card issuers (e.g., VISA and Mastercard) to classify a business based on the type of goods or services they provide.

There are more than 600 different type codes that divide the market into specific segments. Examples include 5111: Office Supplies, 7299: Pet Supplies, 5722: Household Appliances.

• Learn more about Mastercard type codes
• Related: Mapping expense types and type codes

How Does Acubiz Use Type Codes?

Acubiz utilizes this data to automate employee expense posting. The goal is to ensure fast and accurate posting of credit card transactions with minimal manual involvement. When a transaction is imported into Acubiz, the transaction’s type code is matched with the company’s chart of accounts. If an expense account with a corresponding type code exists, the system will automatically select that account.

Example of an automated workflow:

1. An employee pays for a taxi with their company card.
2. The transaction is received in Acubiz with the type code 4121.
3. Acubiz identifies that your "Taxi" account is linked to type code 4121.
4. The expense is automatically posted correctly, and the employee saves time on manual entry.

ℹ️Efficiency can be further improved by using Real-time transaction data for Acubiz

Important Considerations for Automation

Although type codes are an effective tool, there are two important factors to be aware of:

1. User Choice Takes Precedence It is important to note that the user’s active choice in the Acubiz app always overrides automation. If an employee manually changes the expense type, that choice will be the basis for the final posting, regardless of what the type code dictates.

2. Limitations with Identical Type Codes Not all expenses are suitable for automatic matching via type codes. This is especially true when different expense types share the same type code.

Example: A restaurant will always have the same type code. In your accounting, however, you likely differentiate between "Meals" and "Entertainment". If you link the type code to "Meals," the system will automatically select this account every time – even when the expense is actually entertainment.

Because employees often overlook correcting a pre-filled account, it is recommended in such cases to leave the field blank so the employee is forced to consider the purpose of the visit.

Specify the range for the type code in the type code field on the expense account:

ℹ️See also Mapping expense types and type codes

For this reason, type codes should be used with care, and it is not allowed to assign the same type code to two different expense accounts in Acubiz.

To identify the type code for a specific transaction, you can open the transaction and review the details as follows:

• See also Enable or disable automatic approval