Remittance advice is a note a buyer sends a supplier to say "here's the payment we've made, and here are the invoices it covers." It isn't a request for money — it's the opposite. It helps the supplier's accounts team apply the incoming payment to the right invoices quickly and correctly.
What is remittance advice?
When a buyer pays — especially by bank transfer or check covering several invoices at once — the supplier can struggle to tell which invoices the lump sum pays off. Remittance advice solves that by listing each invoice number, amount, any deduction, and the amount paid, along with the payment date, method, and reference.
What it includes
- Payer and supplier/payee details
- Payment date, method, and reference (e.g. ACH trace or check number)
- A table of invoices paid: invoice number, date, amount, deductions, amount paid
- Total paid
Free Remittance Advice Template
Below is a free, blank remittance advice template. Download it, list the invoices your payment covers, and send it to your supplier with (or just after) the payment. Download the remittance advice template
Why it matters
Without remittance advice, a supplier's team wastes time matching payments to invoices ("cash application") and may wrongly flag paid invoices as overdue. With it, accounts receivable are cleared faster and relationships stay smooth. Many ERP and accounting systems generate it automatically.
Remittance advice vs. invoice vs. receipt
An invoice requests payment (from seller to buyer). Remittance advice announces a payment (from buyer to seller). A receipt confirms payment was received (from seller to buyer).
FAQ
What is remittance advice? A note a buyer sends a supplier listing the invoices a payment covers. It's not a request for payment — it helps the supplier apply the payment to the correct invoices.
Is remittance advice the same as an invoice? No. An invoice requests payment from the buyer; remittance advice announces a payment the buyer has made and which invoices it covers.
What should remittance advice include? Payer and payee details, payment date, method and reference, a list of invoices paid with amounts and deductions, and the total paid.
Is remittance advice legally required? No, it is a courtesy document, but it greatly speeds up cash application and reduces disputes, so most businesses send it.
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