How automatic categorization works

Automatic categorization fills in a category for a transaction as it arrives, when no rule has set one. It uses the categories you chose for the same payee before, and the category a bank or file supplies.

What it uses

Payee history. The app uses the category you have chosen most often for that payee name. Example: you have 12 earlier "Costco" transactions, 9 in Groceries and 3 in Household supplies. A new "Costco" transaction gets Groceries.

The bank's or file's category. A bank connection can send a category label with a transaction. The app matches the label to a category in your budget with the same name. It also matches some common bank labels to similar category names. A CSV or TSV file can have a category column, which the app matches by name only. The app does not read a category from OFX, QFX or QIF files. If no category in your budget matches, the transaction stays uncategorized.

Which one wins

The app uses the first of these that applies:

1. A rule that sets a category.
2. Your payee history.
3. The bank's or file's category.

The Auto categorization setting turns off payee history and the bank's or file's category. It does not affect rules. When a rule splits a transaction, the app uses none of the three on the parent.

When it applies

It applies only as a transaction arrives:

• When you import a file.
• When your bank sends a transaction.
• When you select Add in the Add row (on a phone, the Add transaction form) while Categorize is empty or still shows a category the row filled in. The row also fills the category in as soon as you choose a payee, before you save, but only while Categorize is empty. It does not fill a split or a transfer.

A bank's category can arrive shortly after the transaction does. The app fills it in only if the transaction has no category and you have not marked it reviewed.

It never changes a category that is already set. It does not apply to transfers, to the parent of a split transaction, or to an Add row where you already chose a category. It does not recategorize transactions already in your budget, except for the late bank category above. To categorize those, run your rules or choose the category yourself.

After a file import, the result message shows how many transactions were categorized, for example "12 categorized by your rules". The count includes rules, payee history and the file's category column.

Payee names must match

Payee history compares the payee name as it arrives, before any rule or rename, with the payee names on your existing transactions. It ignores capitalization.

Example: your bank sends "SBUX #1234" and you renamed that payee to "Starbucks". The next "SBUX #1234" creates a new payee with no history, so payee history has nothing to use. A rule with imported payee contains SBUX and set category categorizes it every time. See Rename, merge and delete payees.

Suggestion chip

An uncategorized transaction can have a bank or file category that matches a category in your budget. The Category column then shows it as a small chip with a sparkle icon. Select the chip to accept the category. The chip appears with Auto categorization on or off.

Turn it off

Auto categorization is on by default and applies to the active budget file. To turn it off, open Settings, clear the checkbox in the Auto categorization card and select Save. This affects only transactions that arrive afterward. Nothing already categorized changes. See Settings.