Definition
A reference number is any identifier placed on an invoice or payment to connect related records, such as the client's project code, a contract number, or the text the client should put in their bank transfer so the payment can be matched to the invoice. The invoice number is the most common payment reference.
Also called: Payment reference, Customer reference
Reference number in practice
Ask clients to use the invoice number as the payment reference. When a transfer arrives with no reference, matching it to the right invoice takes time and sometimes a phone call.
Frequently Asked Questions
What should I put as the payment reference?
The invoice number, and the client name if space allows. State the required reference clearly in the payment instructions on the invoice.