Debitoor Dictionary

Accounting terms explained in a simple way

Remittance advice - What is a remittance advice?

Remittance advice is a document sent by a customer to a seller, informing the seller that their invoice has been paid.

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It is not mandatory to send remittance advice, but they are seen as a courtesy as they help the seller match invoices with payments. Remittance advice should therefore include the invoice number, along with the payment amount and the method of payment.

How to send remittance advice

As remittance advice is not mandatory, it can be sent in a number of ways. If they payment is made via cheque, remittance advice should be sent with the cheque.

Remittance advice could come in the form of a note or letter, whereas some businesses create invoices with a removable portion that can be returned by the customer along with the payment.

Online payment is becoming increasingly popular, therefore reducing the need and popularity of remittance advice. If you make a payment online, you could still send an email to inform a business of a payment, or create a reference along with your payment referring to the invoice number.