GL coding is a critical part of accounts payable accounting. While it’s possible to manage GL coding manually in JD Edwards, doing so introduces risk: from misclassifying expenses to delayed approvals and reporting errors.
In this article, we’ll start by exploring the benefits of maintaining an accurate and up-to-date General Ledger. Then, we’ll show you how to automate the GL coding process in JD Edwards, a key step in your broader AP Automation strategy. Keep reading to see how it works in practice.
What are GL codes?
GL codes (General Ledger codes) are alphanumeric identifiers used by accounting teams to classify and track a company’s financial transactions. They’re recorded in the General Ledger, the central system that organizes all transactions by category: assets, liabilities, equity, revenue, and expenses.
Why is GL coding important in Accounts Payable
GL coding, the practice of assigning specific General Ledger codes to financial transactions, is essential for every business. It plays a key role in the accounts payable process by enabling accurate financial tracking, reporting, and analysis.
GL codes act as unique identifiers that give finance teams visibility into spending patterns, support budgeting and forecasting, and help prepare for audits and compliance reviews.
Accurate accounts payable GL coding supports not only compliance, but also deeper visibility into spend and stronger forecasting. As GL coding is central to accounting accuracy, automating this step is essential for financial efficiency.
Here are some of the key benefits of accurate GL coding.
Improved financial reporting and accuracy
Assigning the correct GL codes ensures accuracy during month-end close and financial reporting, reducing errors and inconsistencies.
Better visibility and insights
Accurate GL coding offers a clear breakdown of spending by department, project, or location, helping teams track expenses, monitor performance, and spot trends.
Easier budgeting and allocation
A well-coded General Ledger allows teams to compare actual spend against budgets and make adjustments for better planning and resource allocation.
Reduced compliance risk
Proper expense categorization supports tax compliance, reduces the risk of misreporting, and helps avoid penalties during audits.
Simplified auditing
An organized General Ledger creates a clear audit trail, simplifying financial data review and streamlining both internal and external audits.
Fraud prevention
Detailed coding and visibility into spend activity help detect inconsistencies early and reduce the risk of fraudulent transactions.
Increased efficiency and cost control
Accurate coding speeds up approvals, reduces manual corrections, and allows finance teams to focus on more strategic work.
Informed decision-making
Reliable data helps leadership make smarter financial decisions, optimize budgets, and align spending with company goals.
Automate GL coding in JD Edwards with SCANMAN
As you’ve seen, accurate GL coding is essential for audit readiness, compliance, and strategic financial reporting. But in JD Edwards, manually assigning GL codes can be time-consuming, error-prone, and can ultimately slow down your entire AP process.
GL Coding Automation eliminates that uncertainty. With SCANMAN AP Automation for JD Edwards, GL coding no longer requires time-consuming manual steps.
How GL Coding Automation works
The new GL Coding feature within SCANMAN AP Automation automatically assigns the correct GL codes to each transaction based on your preferred method, eliminating manual work, reducing errors, and improving accuracy.
Without automation, an AP clerk would have to open the coding screen and manually enter each GL code. While standard JD Edwards offers model accounts or a single default expense account, some manual actions are still needed.
Because SCANMAN is fully embedded in JD Edwards, we’ve been able to take automation one step further, removing the need for AP teams to manually assign GL codes altogether.
In the next section, we’ll show you how it works in practice.
Four ways to automate GL coding in JD Edwards
Because SCANMAN AP Automation is fully embedded in JD Edwards, it functions as a native JDE module, offering greater flexibility and deeper automation for direct cost invoicing.
Thanks to this characteristic, we were able to create this intelligent GL Coding feature that will make your GL coding process automated.
The process is simple: when you receive an invoice, the system automatically recognizes that the invoice is set up for GL Coding Automation. It flags the invoice with a related status, and the orchestration report picks it up for automated processing. This all happens without any manual intervention.
With SCANMAN, you can choose between four ways to automate GL coding in JD Edwards:
- Default/Defined expense account
- Model GL coding
- Last approved voucher
- OCR-based coding
Each method supports different use cases, depending on the complexity of the situation and on your preferred setup. Let’s take a closer look at each method.
Default/Defined expense account
This option is ideal for simple invoices with a single amount and one GL account. The expense account can be defined either in the Supplier Master or in SCANMAN. Once set, the system automatically applies the GL code during processing.
Model GL Coding
Designed for repeatable multi-line GL coding scenarios, this method allows you to define GL distribution models in either the Supplier Master or SCANMAN. It supports:
- Percentage-based amount redistribution
- Cost objects
- Predefined remarks
Last approved voucher
This method uses the GL coding from the last approved voucher. The system automatically calculates the amounts based on the percentage per line, in relation to the total amount to distribute on the last approved voucher.
OCR Automation
Best for dynamic or complex GL coding scenarios. The OCR extracts key anchor points from the invoice and uses them to determine the correct coding. This approach offers maximum flexibility when invoice format or account structures vary frequently.
Flexible GL Coding automation with OCR
Of the four methods, OCR GL Coding is the most flexible, ideal for handling complex or variable invoices where coding rules often change. It can be used in two ways:
- GL Single Reference
- GL Lines
The reference points, whether extracted from a single field or line items, can be linked to a single account or model account.
This gives you full control over how invoices are coded, with the ability to cross-reference each data point independently. OCR-based automation. This type of GL coding OCR automation adapts to various invoice layouts and supplier formats, making it an excellent option for high-volume or non-standard invoices.
Real-life examples of automated GL Coding in JD Edwards
While many companies rely on spreadsheets or templates, others are turning to the best AI-powered tools for automatic GL coding, like SCANMAN, for accuracy and efficiency at scale.
SCANMAN GL Coding Automation targets three key elements: Account reference, Remark, and Amounts on a line level or a single account reference only.
Let’s have a look at how SCANMAN GL Coding Automation works in practice.
GL Lines to single accounts
Single reference to model coding
The future of GL Coding automation is embedded in JD Edwards
GL coding plays a vital role in your company’s financial reporting. Ensuring the General Ledger is accurate and expenses are routed to the correct accounts supports audit readiness, better budgeting, and smarter decision-making.
Whether you’re dealing with simple expense invoices or complex multi-line transactions, SCANMAN offers the most flexible GL coding automation available, fully embedded in JD Edwards and purpose-built for accounts payable teams.
At SCANMAN, our goal is to automate financial processes in JD Edwards, so your team can work faster, smarter, and with fewer manual touchpoints.
Get in touch with us to see how GL Coding automation in JD Edwards can fit your organization’s needs. Please fill out this form, and our team will be in touch with you soon.
