Exception handling is the governed process for identifying, routing, resolving, approving, and recording activity that falls outside expected rules or matched conditions. Examples include missing evidence, budget conflicts, late approvals, receipt differences, invoice mismatches, or integration errors. Effective handling distinguishes operational correction from authorized policy exception and preserves the reason, owner, action, and outcome.
In plain English
It gives unusual or mismatched cases a controlled path instead of letting them disappear into email.
Illustrative example
At Northstar Industrial Systems, an invoice quantity exceeds the recorded receipt, so the case routes to receiving and finance with the supporting order and delivery evidence.
- Related terms
- Approval workflow; Invoice matching; Escalation; Audit trail
- Lifecycle stages
- All stages
- Stakeholders
- Procurement; Finance; Operations; Approver