Business Coding systems - Bank accounts |
One well established coding system is a bank account number. This clearly illustrates how a code may be made up of sub-parts, each with a particular meaning.
It should be noted that a checking formula is used to ensure the validity of the number.
The method used is as follows;
Multiply each (or selected) digits by a weighting factor, add their sum and divide by a
prime number.
If the remainder is zero the Account number is valid.
For Example:
| 1 | Take 581 and weight by 3,4,2 Hence (5 * 3) + (8 * 4) + (1 * 2) =49 Divide by a specified prime number (say 7) = 49/7 = 7 with 0 remainder Hence a valid number |
| 2 | Take 562 and weight by 3,4,2 Hence (5 * 3) + (6 * 4) + (2 * 2) =43 Divide by a specified prime number (say 7) = 43/7 = 6 with 1 remainder Hence invalid number |
