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exception records would be records that to not meet predefined criteria.
Can you give us more information as to what exactly your assignment is.
The meaning of an exception record is whatever meaning you give to them.
The EXCEPT operation code was designed to give the RPG language a way to print lines on a report that were outside of the normal processing cycle. The operation code is used to generate output records that are exceptions to the normal output records. Usually an exception record would print some kind of error information.
But you can use EXCEPT any way you can figure out. It would just be a little confusing for later programmers if you used it for something that wasn't an "exception". Since you have all the other output operation codes, why would you use EXCEPT for normal output?