A KID number (Customer Identification Number) is a unique code used in invoice payments to identify the customer and link the payment to the correct invoice. It helps businesses improve accounting efficiency and accuracy.
Benefits of using a KID number
Simplifies payment tracking
Reduces manual registration
Ensures accurate payment matching
Provides better accounting overview
How to use a KID number on invoices
Set up an OCR agreement with your bank. Often done directly through your accounting software.
The software generates a KID number. It can be 3 to 25 digits long and ends with a control digit.
Send the invoice with the KID. The customer includes it in their payment.
Receive OCR files from your bank. These are imported into your accounting system for payment tracking.
What is OCR? OCR (Optical Character Recognition) is the technology banks use to automatically read KID numbers, amounts, and account numbers. KID and OCR are often used interchangeably.
Using KID numbers improves invoice management and minimizes payment errors.
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