---
term: "Exception"
category: "Settlement and reconciliation"
url: https://federatedbanking.com/glossary/exception
source: Federated Banking™ glossary
---

# Exception

> A record that does not match and needs to be investigated and resolved.

An exception is an expected record with no matching external record, or the other way round, or a pair that differs in amount or date. Exceptions are not hidden: they are surfaced, shown with both records side by side and tracked through investigation to resolution, so nothing unmatched is ignored.

Related terms: [Reconciliation](https://federatedbanking.com/glossary/reconciliation.md)