Glossary
What is remittance advice?
By Tim White · Last updated
Remittance advice is a note the payer sends the supplier to say which invoices a payment covers. When one bank transfer settles five invoices, the remittance advice lists those five, so the supplier can match the money to the right bills instead of guessing.
Why it exists
Payments and invoices rarely line up one to one. A single payment often clears several invoices, sometimes minus a credit memo. Without a note saying what it covers, the supplier has to reverse-engineer the math.
Where it fits with your invoices
Remittance advice is something you send when you pay, built from the invoices you are settling. The cleaner your invoice records, the easier it is to say exactly which ones a payment covers.
InvoiceJet keeps those records straight: each invoice is extracted with verified vendor, number, and amount, and can be marked paid, so the list behind a payment is accurate.
A worked example
You send one transfer of 9,150 dollars to Brightline Paper. It covers three invoices, 4,000, 3,500, and 2,000, minus a 350 credit memo for a short shipment. Without a note, Brightline sees 9,150 land and has to reverse the math to find which bills it clears. The remittance advice lists those three invoices and the credit, so their team matches the payment in a minute and skips the email asking what it was for.
Common questions
Is remittance advice required?
No, it is a courtesy that speeds up the supplier's reconciliation. Many businesses send it as a matter of habit because it cuts down on 'what was this payment for' emails.
What information is on a remittance advice?
It lists the payment date and amount, the invoice numbers the payment covers, and any deductions such as a credit memo. That is enough for the supplier to match the payment to the right invoices.
What is the difference between remittance advice and a receipt?
Remittance advice is sent by the payer to say which invoices a payment covers. A receipt is issued by the payee to confirm the money was received, so they come from opposite sides of the same payment.
Sources
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