REMITTANCE ADVICE

A remittance advice is a statement that accompanies a payment to a supplier,

detailing what was paid. The supplier uses the information on a remittance advice to flag
outstanding receivables in its accounting system as having been paid. A remittance advice
is frequently printed as an attachment to a check payment. It includes the invoice number
and payment amount for each invoice paid. The use of this document can be considered a
best practice, since it prevents the recipient of a payment from needing to contact the
sender to discuss what was included in the payment.

When a business makes an electronic payment, it can still issue a remittance advice,
which is typically contained within an email.