Classification Audit Tabs – Reference
Audit tabs allow you to segment your dataset based on procurement risk patterns. Instead of reviewing transactions sequentially, you can use these filters to target specific data anomalies or high-impact suppliers.
📋 Audit Tab Matrix
| Audit Tab | Focus & Purpose | Strategic Rationale |
|---|---|---|
| Top 20 Vendors | Focuses on the 20 vendors with the highest total spend volume and transaction count. | High Impact: Correcting errors here yields the highest ROI on your manual audit time by securing the accuracy of your largest spend buckets. |
| Multiple L1 & L2 | Isolates vendors whose spend is classified into multiple distinct Level 1 and Level 2 categories. | Fragmentation Audit: Identifies suppliers providing disparate services. Helps detect if a vendor is being "over-classified," which distorts category analysis. |
| Single Category Vendors | Highlights vendors whose transactions fall entirely into one specific category. | Niche Accuracy: Ensures specialized suppliers (e.g., a pure SaaS vendor) haven't had non-core spend mistakenly categorized elsewhere. |
| Multiple Item Classification | Flags transactions where line items within a single invoice were split into different categories. | Granularity Check: Essential for complex invoices (like Amazon or a broad MRO provider) to ensure item-level accuracy vs. "blanket" classification. |
| Vendor Profile | Provides a macro-level overview of unique vendor counts and total transaction records. | Data Health: Acts as a pre-audit "sanity check" to ensure the total vendor count aligns with expected ERP outputs. |
| Intercompany | Segments transactions identified as internal transfers between company entities. | True Spend: Crucial for separating internal cost-allocations from true third-party market spend used in sourcing negotiations. |
🛠️ Selecting Your Audit Path
Depending on your current goal, you should prioritize different tabs:
1. The "Quick Win" Path (Focus: Impact)
Start with Top 20 Vendors. Correcting just one misclassified record for a multi-million dollar supplier has a greater impact on reporting accuracy than correcting 100 small-dollar records.
2. The "Data Integrity" Path (Focus: Cleanliness)
Use Multiple L1 & L2 and Multiple Item Classification. These tabs are designed to find "outliers" where the AI might be confused by ambiguous descriptions or complex invoices.
3. The "Sourcing Prep" Path (Focus: Leverage)
Focus on the Intercompany tab. Before presenting a spend cube to a vendor for negotiation, you must be 100% certain that internal transfers are excluded from the volume you are claiming.
Pro-Tip: The '90/10' Rule
Most procurement organizations find that 90% of their classification errors reside in the Top 20 Vendors and Multiple L1 & L2 tabs. By focusing 100% of your manual effort here, you can achieve near-perfect spend visibility with minimal labor.