Remittance Advice
Remittance advice tells the supplier which invoices a payment covers.
Remittance advice is a document (or message) sent by the payer alongside payment, listing the invoice numbers and amounts the payment settles. It lets the supplier's accounts team apply the cash to the right invoices without guessing. It is especially important when one payment covers multiple invoices or only part of one.
Example
A buyer paying three invoices in one transfer attaches remittance advice listing INV-101, INV-102, and INV-103 with their amounts.
Related terms
Frequently asked questions
Is remittance advice mandatory?
No, but it is strongly recommended. Without it, suppliers waste time reconciling payments — and may apply your money to the wrong invoice, causing confusion for both sides.
Can remittance advice be an email?
Yes. A simple email listing the invoice numbers and amounts paid counts as remittance advice. Many accounting systems also generate a formal remittance slip automatically.
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