Auto-categorize bank feed transactions into GL accounts with rules and review queues

Steps

1. Ingest bank feed transactions from your bank or accounting platform's API (e.g., Xero BankTransactions, QBO BankTransaction feed) into a staging table with fields: transaction_id, date, amount, description, bank_account_id, and status=pending.
2. Build a rules engine that applies ordered rules to each staged transaction: rules match on description regex, amount range, counterparty name, or bank transaction type code, and assign a candidate GL account, tax code, and confidence score.
3. For transactions that match a high-confidence rule (above a configurable threshold), automatically create the accounting entry in the ERP (via POST to the relevant journal or bank transaction API) and mark the transaction as auto-categorized.
4. Route low-confidence or unmatched transactions to a human review queue, presenting the transaction details alongside the top N rule candidates and their confidence scores, and allowing the reviewer to confirm, override, or create a new rule.
5. Record each review decision (account assigned, rule applied or created, reviewer ID, timestamp) to train or update the rules engine; over time, promote frequently confirmed manual categorizations into new automatic rules.
6. Produce a monthly categorization-accuracy report showing auto-categorized rate, override rate, and new-rule creation rate to identify segments of transactions where the rules engine needs improvement.