What is a remittance advice?
A remittance advice is a document sent by a buyer to a supplier to notify them that a payment has been made. It details which invoices are being paid, the amounts applied to each, any deductions taken, and the payment method used. It serves as a courtesy notification that helps the supplier reconcile their accounts.
Remittance advice is standard practice in B2B accounting, particularly in the UK where it’s a routine part of the payment cycle. When a company runs a weekly or monthly payment batch covering dozens of supplier invoices, the remittance advice tells each supplier exactly how their payment breaks down.
Without remittance advice, suppliers are left guessing which invoices a payment covers — especially when one bank transfer settles multiple invoices minus deductions for credit notes or early payment discounts.
What should a remittance advice include?
A clear remittance advice includes everything the supplier needs to allocate the payment:
- Payer Details: Your company name, address, and accounts payable contact information
- Payee Details: The supplier’s name and address, plus their account or vendor reference number
- Payment Information: Payment date, payment method (bank transfer, cheque, etc.), and total amount paid
- Invoice Breakdown: A line-by-line list of each invoice being paid, showing invoice number, invoice date, original amount, and amount now being paid
- Deductions: Any credit notes applied, early payment discounts taken, or other adjustments, with reference numbers
- Running Total: The net amount paid after all deductions, matching the bank transfer or cheque amount
Last updated: March 2026