Insights/Glossary/

Exception

Review State

Exception

Exception

A difference remains without a confirmed explanation. This is where finance review is required.

Glossary

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Reference record

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Updated

September 22, 2026

In payments

The expected result and actual activity still differ after timing, fees, reserves, refunds, chargebacks, adjustments, and grouping have been reviewed.

In reconciliation

Exceptions identify the smaller set of records that still require judgment or investigation instead of requiring finance to review every item equally.

Matched

The statement activity and bank activity agree.

Offset

A difference exists, but related activity explains it. A reserve hold, processing fee, chargeback, refund, or adjustment might account for the gap.

Exception

A difference remains without a confirmed explanation. This is where finance review is required.

Example

Illustrative example
Expected deposit$46,779
Actual bank deposit$46,754
Unexplained difference-$25 Exception

The $25 remains an Exception until its source is identified.

Related terms

Related Insights

Updated

September 22, 2026

All terms
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