In one line
The note a client sends saying which invoices a payment covers.
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.
Example. A $7,400 transfer covering invoices 1041, 1043 and 1047.
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.
The tools for this
Related terms
- PO numberThe client's own reference for an order, quoted on your invoice so their accounts team can match it.
- Invoice numberThe unique reference that identifies one invoice, running in sequence with no repeats.
- Accounts receivableThe money your clients owe you on invoices you have sent but not yet been paid for.
- Statement of accountA summary of everything a client owes across all their open invoices.
Common questions
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.