Example
A client pays $7,400 in one transfer. Their remittance advice lists INV-1041 $2,450, INV-1043 $3,100 and INV-1047 $1,850, so you can mark all three paid.
Also called a remittance slip or a payment advice.
What it means in practice
A single bank transfer often settles several invoices, and without a remittance advice you are guessing which. Ask for one from any client who pays in batches.
The other half of this is on your side: the remittance details on your invoice, the bank name, account and routing number or the payment link, so the client can pay without emailing you first.
Covered in full in the guide to payment links and qr codes.
Where it shows up on the paperwork
It comes to you rather than from you, usually as an email listing the invoices a payment covers. Your side of it is the remittance details on the invoice: bank name, account and routing number, or a payment link.
What goes wrong
- Leaving your bank details off the invoice, then wondering why the client emailed instead of paying.
- Not asking for remittance advice from clients who pay in batches.
- Putting bank details in the email body rather than on the document, where they can be checked against your letterhead.
Common questions
Remittance advice vs receipt: what is the difference?
Remittance advice is sent by the payer to say what they are paying for. A receipt is sent by you to confirm it arrived. Opposite directions, and only one of them is proof of payment.
What does remittance advice look like?
A short note listing the invoice numbers being paid, the amount against each, the total and the payment date. It exists so you can match one lump transfer to five invoices without guessing.
Who sends remittance advice?
The client sends it, usually with or just after the payment. If they do not, and a single transfer covers several invoices, ask for it rather than allocating by guesswork.
What are remittance details on an invoice?
What a client needs to actually pay you: bank name, account and routing or sort number, or a payment link and reference. Leaving them off is a common reason an invoice waits.
How do I match a payment to invoices without remittance advice?
By the reference, if the client used one, which is why the invoice number should be the payment reference. Otherwise ask, and ask them to send advice next time.
Is remittance advice the same as a remittance notice?
Yes. Remittance advice, remittance notice, remittance slip and payment advice all name the same thing: the payer telling you which invoices the money you are about to receive is meant to settle.
Is remittance advice proof of payment?
No. It says the client has sent or scheduled a payment, not that the money has arrived. Check your bank account before marking the invoices paid, and send a receipt once it clears.