Remittance
A remittance is a payment sent to settle an invoice or obligation.
Remittance simply means money sent in payment — most often a customer paying a supplier's invoice. The word also appears in payroll (remitting taxes) and in international transfers. What matters in invoicing is that the remittance can be matched to the right invoice, which is why remittance advice exists.
Example
The client remits $2,500 by bank transfer to settle invoice INV-1042.
Related terms
Frequently asked questions
Is remittance the same as payment?
Essentially yes — remittance is the formal word for sending payment, especially in business and cross-border contexts. A remittance becomes useful paperwork when paired with remittance advice identifying which invoices it covers.
What details should accompany a remittance?
The invoice number(s) being paid, the amount, the payment date, and the payer's name. Without the invoice number, the recipient may not know which bill the money settles.
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