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Glossary

Tolerance Matching

Tolerance matching is a reconciliation method that accepts two entries as candidate matches even if their amounts differ by a small configurable percentage or fixed amount.

Full definition

Tolerance matching allows two transactions to be considered a match candidate when their amounts are close but not identical — for example, within 0.5% of each other, or within a fixed £10 difference. This is commonly needed when fees, rounding, FX conversion, or tax handling causes small amount differences between the two files being reconciled. The tolerance threshold is configured based on the acceptable variation for a given reconciliation type.

Why it matters

Many reconciliation workflows involve amounts that are slightly different across systems — due to processing fees, currency conversion rounding, or tax computation differences. Without tolerance matching, these entries create large exception queues that require entirely manual review.

Example

A card settlement file shows $5,000.00 as the gross amount. After a 2.5% processing fee deduction, the net payout is $4,875.00. The ledger recorded the gross amount. With appropriate tolerance and fee-handling configuration, these can be recognized as the same event rather than surfaced as exceptions.

How Certanexa helps

Certanexa supports tolerance-based matching with configurable percentage or fixed-amount thresholds — helping finance teams handle fee deductions, rounding, and FX differences without excessive manual exception review.

Safe boundary: Tolerance thresholds should be set based on acceptable variance for each reconciliation type. Certanexa helps apply them but does not determine what tolerance is appropriate for a specific workflow.

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Related pages

Reconciliation
Ecommerce Payout Reconciliation

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