Definition
Remittance advice is a notice a client sends to a supplier to say a payment has been made and which invoices it covers. It lists the invoice numbers, amounts, any deductions, and the payment date and method. It lets the supplier reconcile the payment to the right invoices quickly.
Also called: Payment advice, Remittance slip
Remittance advice in practice
Large companies send remittance advice automatically from their accounts payable systems. If a client pays several invoices in one transfer without advice, ask for a breakdown so you can allocate the payment correctly.
Frequently Asked Questions
Is remittance advice the same as a receipt?
No. Remittance advice comes from the payer to say "we paid these invoices". A receipt comes from the seller to confirm "we received your payment".