A computer-implemented system and method for the definition, creation, management, transmission, and monitoring of errors in a SOA environment. An example embodiment includes: defining a common standard error data structure; automatically generating a unique identifier (ID) for each new error data instance; allowing customization of error data structure through extensions; creation and management of error instances that conform to this structure; ability to group errors across various dimensions; introducing the concept of an error library, the error library including a plurality of localizable error bundles, each of the error bundles including a plurality of error data instances for a particular domain, along with the associated metadata; automatically creating runtime artifacts for each error; ability to transmit errors either as faults or as part of the normal response payload; automatic error metric collection based on various error categories, and finally, tooling to help manage error libraries and reporting errors.