Creditor Reference

The Creditor Reference (called also The Structured Creditor Reference) is based on ISO 11649 (will implement end of 2008).

With Creditor Reference a company can automatically match their remittance information to their Sell Ledger. I.e. this means that company's financial supply chain's STP will increase in the new level.

Implement of Creditor Reference

Creditor Reference is basically easy to implement, but well planed structure will be later support E.g. company's cash forecasting and in-house banks projects.

Basically, a company (vendor) has only to add Creditor Reference to their invoices. When customer pays their bills they have only write the reference in the message part (or specially Creditor Reference field) in their payment ledger.

When the vendor receiver the payment, it can automatically match the information to their A/R (Accounts Receivable) system With Creditor Reference companies can use to the Structured creditor reference to remittance informationautomatic match their incoming

The Structure of The Creditor Reference

The Creditor Reference is 25 characters long and alphanumeric. In the begin there are two letters 'RF'. After it there are two check digits. Check digits will confirm  that the reference will be entered correct.

The remaining part of the Creditor Reference (up to 21 alfa-numberic character)  is the Reference. The content of the creditor reference part can be determined without any restrictions.

E.g.: RF 68 5390 0754 7034 (Where 68 is Check Digits).

Howto calculate check digits. Calculating Check Digits and how to validate will be add later. validating