CAP 135
| Category: | Expense intelligence |
| Business Goal: | BG-003 — Intelligent financial assistant; BG-009 — Automate everything that can be automated |
| System Domain: | SD06 — Snowflake Analytics & Risk Platform |
| Satisfying Module: | MOD-088 Expense classification engine (module in design) |
Description¶
Every transaction is classified across five dimensions: ownership (personal / business / mixed), purpose (client meeting, supplies, commute, etc.), tax treatment (fully claimable / 50% entertainment / non-claimable / personal), accounting category, and confidence score. The classification model is a hybrid of ML inference and user-defined rules, improving over time as users confirm or override suggestions.
This is the engine behind the "5 hours in Xero → 5 minutes a month" proposition. See Expense Intelligence platform for full context.
Classification dimensions¶
| Dimension | Values | Notes |
|---|---|---|
| Ownership | Personal / Business / Mixed / Rental | Primary split |
| Purpose | 15+ intent categories | e.g. Client entertainment, Office supplies, Commute |
| Tax treatment | Fully claimable / 50% entertainment / Non-claimable / N/A | NZ/AU rules built in |
| Accounting code | Chart of accounts mapping | Xero/MYOB compatible |
| Confidence | 0–100% | Drives automation threshold |
Classification inputs (ranked by weight)¶
- User-confirmed rules for this merchant/context
- Merchant category (MCC) and enriched name
- Behavioural pattern (time, recurrence, location cluster)
- Geo-spatial context (office cluster, trip period)
- Population signal (privacy-safe aggregate: most users classify this as X)
Automation thresholds¶
- ≥95% confidence → auto-classify, no prompt
- 70–94% → classify, show subtle indicator, easy one-tap override
- 40–69% → surface as suggestion in daily triage queue
- <40% → require manual input
Learning loop¶
User confirmation / override → rule candidate created → confidence updated → future transactions auto-classified → prompt rate decreases over time. Goal: new users reach >80% auto-classify within 90 days of first use.