> ## Documentation Index
> Fetch the complete documentation index at: https://docs.layerfi.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Transaction categorization

> Categorize, match, uncategorize, and manage rules for bank transactions.

Layer MCP can retrieve and act on bank transactions for the configured business. Matching and categorizing are different actions: **match** confirms a suggested invoice/bill (or other) match; **categorize** assigns a ledger account, split, or exclusion.

Amounts are integer cents. For REST request shapes, see [Transaction categorization](/guides/transaction-categorization), [Categorize Bank Transaction](/api-reference/v1/categorize-bank-transaction), [Match Bank Transaction](/api-reference/v1/match-bank-transaction), and [Bulk Match or Categorize](/api-reference/v1/bulk-match-or-categorize).

## Sequence

<Steps>
  <Step title="List transactions that need review">
    Call always-load `get_bank_transactions` with filters (date range, direction, amount, categorization status, description, merchant, customer, vendor, external account, tags, search). Use `cursor` / `limit` on lists. Fetch one row with `get_bank_transaction`.
  </Step>

  <Step title="Load valid accounts">
    Call always-load `get_chart_of_accounts` before categorizing so account IDs and stable names are valid.
  </Step>

  <Step title="Match or categorize">
    Use `match_bank_transaction` when the transaction already has a suggested match to confirm. Use `categorize_bank_transaction` to assign a single account, split across accounts, or exclude. Use `bulk_match_or_categorize_bank_transactions` for a map of transaction id → match or categorize.
  </Step>

  <Step title="Undo or annotate when needed">
    `uncategorize_bank_transaction` and `bulk_uncategorize_bank_transactions` are destructive. `update_bank_transaction_metadata` updates memo-style fields without changing categorization.
  </Step>
</Steps>

## Reads (core + accounting)

Always-load on business: `get_bank_transactions`. Also: `get_bank_transaction`, `get_chart_of_accounts` (always-load).

`get_bank_transactions` is available in platform and business mode. Categorize/match/uncategorize writes are **business** only (`core` + `accounting`, except bulk categorize which is `accounting`).

## Categorize vs match vs uncategorize

| Tool                                                                    | What it does                                                                     |
| ----------------------------------------------------------------------- | -------------------------------------------------------------------------------- |
| `categorize_bank_transaction`                                           | Always-load on business. Single account, split, or exclude. Distinct from match. |
| `match_bank_transaction`                                                | Confirms a **suggested match**. Does not assign a P\&L category.                 |
| `bulk_match_or_categorize_bank_transactions`                            | Map of transaction id → `match` or `categorize`.                                 |
| `uncategorize_bank_transaction` / `bulk_uncategorize_bank_transactions` | Destructive. Clears categorization.                                              |
| `update_bank_transaction_metadata`                                      | Metadata only.                                                                   |

Splits must sum to the transaction amount. See [Split Categorizations](/api-reference/v1/categorize-bank-transaction#split-categorizations).

Search phrases: match vs categorize, confirm suggested match, assign ledger account, exclude.

## Rules and suggestions

Business writes in `accounting`:

* `list_categorization_rules`, `get_categorization_rule`
* `create_categorization_rule`, `update_categorization_rule`
* `archive_categorization_rule` (destructive)
* `list_categorization_rule_suggestions`
* `accept_categorization_rule_suggestion`
* `reject_categorization_rule_suggestion` (destructive)

See [Categorization rule suggestions](/guides/transaction-categorization/rules-suggestion).

## Related workflows

* Attach receipts with [Receipts](/insights/mcp-server/receipts) (prepare → S3 PUT → complete; never base64 through the model).
* Dimension tags with [Tags and journal entries](/insights/mcp-server/tags-and-journals). Tag filters on bank transaction list are supported; report tag filters are limited (see [Financial reports](/insights/mcp-server/financial-reports)).