Account Exceptions

An ‘‘account exception’’ is an interruption in the regular flow of loan payments ----- a returned check for instance, or a change in the loan’s interest rate as a result of a contract provision or negotiation.

There are two ways to handle account exceptions: (1) through the journal and (2) through transaction histories. The only difference between the two methods is that exceptions handled through the journal show up on the next posting report. Excep- tions handled through transaction histories don’t show up on a posting report and require differences to be recorded with memos.