Glossary
Remittance advice: what it is, what it contains and why it matters
A remittance advice is a document or message a payer sends to a payee to explain a payment: which invoices it settles, the amounts, any deductions or credit notes, and the payment date and reference. It is not a payment and not a receipt; its job is to let the receiver match incoming money to open invoices quickly and without guesswork.
- Remittance advice
- A notice from the payer to the payee listing the invoices, amounts, deductions and references that a payment covers, used by the payee to reconcile the payment against its receivables.
What does a remittance advice contain?
There is no single legal template, but most remittance advices carry the same fields.
- Payer and payee names and the payer's customer or supplier number
- Payment date, amount, currency and method, for example SEPA credit transfer
- Invoice numbers paid, with the amount applied to each
- Deductions such as early-payment discounts, credit notes or withholding
- Payment reference that also appears on the bank statement
Remittance advice vs invoice vs receipt
An invoice is sent by the seller to request payment. A remittance advice is sent by the buyer to explain a payment it has made or is about to make. A receipt is issued by the seller to confirm that money arrived. In German the remittance advice is usually called Zahlungsavis.
How does structured remittance information speed up reconciliation?
A SEPA credit transfer can carry up to 140 characters of remittance information (EPC SCT Rulebook), either free text or a structured creditor reference under ISO 11649. When the reference matches the invoice, accounting software can match the payment automatically. ISO 20022 messages also allow longer structured remittance data. For card and wallet payments, the order ID passed through the payment provider and returned in webhooks and settlement reports plays the same role.
Frequently asked questions
Is a remittance advice legally required?
Usually not. It is a business practice that helps the payee apply payments correctly; contracts or large customers may still require it.
Who sends a remittance advice?
The payer, typically a business customer paying several invoices at once. It is sent by email, EDI, a supplier portal or inside the payment message.
What is the difference between remittance advice and payment advice?
The terms are often used interchangeably. Some banks call their own notice of an incoming or outgoing transfer a payment advice, while the remittance advice comes from the payer.