Skip to content
Go to GoCardless homepage
Pricing
LoginSign up
BreadcrumbResourcesAccountants

What is remittance advice?

For suppliers and customers alike, it’s always beneficial to have a little more clarity around the invoicing process. As a customer, issuing remittance advice slips can help ensure that your suppliers are always able to match an invoice to a payment. As a supplier, requesting remittance advice can help you optimise your accounts receivable processes. But what is remittance advice? Find out everything you need to know with our comprehensive guide.

What is remittance?

Deriving from the term ‘remit’ (meaning “to send back”), remittance refers to a sum of money that is sent back or transferred to another party. It covers virtually any payment, from bills to invoices, and is typically used with overseas payments – when one party is based in another country. In addition, remittance can also cover personal money transfers made to friends and family.

Remittance advice meaning

So, what is remittance advice? In short, remittance advice is a proof of payment document sent by a customer to a business. Generally, it’s used when a customer wants to let a business know when an invoice has been paid. In a sense, remittance slips are equivalent to cash register receipts. They’re particularly helpful when it comes to matching up invoices with payments.

Because online payments are becoming increasingly popular, remittance advice slips are sometimes unnecessary. However, after an invoice has been paid, sending a confirmation email is always appreciated.

What should a remittance advice slip include?

Several key pieces of information need to be included on your remittance advice slip. Most importantly, the slip should identify:

  • Your name and address

  • Supplier’s name and address

  • Method of payment

  • Payment amount

  • Invoice number

The remittance advice slip should be issued on company headed paper and contain contact details for a member of your organisation who can deal with any queries the supplier may have.

Do I need to send remittance advice?

No, remittance advice slips are not obligatory. However, they are a courtesy that suppliers are likely to appreciate, as they can be very helpful for recordkeeping and identifying which payments are associated with which accounts. Furthermore, remittance slips don’t require much effort to produce, as many businesses will issue a remittance advice note alongside the invoice, making it easier for customers to send across the required information in the correct format.

What are the different types of remittance advice?

It’s important to note that remittance advice comes in several different forms:

  • Basic remittance advice – Basic note or letter stating the invoice number and the payment amount.

  • Removable invoice advice – An invoice that comes with a removable remittance slip that customers are encouraged to fill in.

  • Scannable remittance advice – Remittance slips that can be scanned for electronic records.

What’s the best way to send remittance advice?

If you want to issue a remittance advice slip to your supplier, there are a couple of different options: email and snail mail. It’s worth remembering that snail mail is likely to be slower, so for the sake of efficiency, email is probably the best choice. When you send your remittance slip over email, ensure that it’s going to the appropriate email address (unless you’ve been told otherwise, this is likely to be accounts receivable). If you send it to a general company inbox, it can get lost in the shuffle.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.

GoCardless makes it easy to collect recurring payments

Sign upContact sales

Interested in automating the way you get paid? GoCardless can help

Contact sales

Contact Us

Sales

Contact sales

+44 20 8338 9539

Support

Request support

+44 20 8338 9540

Seen 'GoCardless Ltd' on your bank statement? Learn more

GoCardless Ltd., Sutton Yard, 65 Goswell Road, London, EC1V 7EN, United Kingdom

GoCardless (company registration number 07495895) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017, registration number 597190, for the provision of payment services. GoCardless SAS (23-25 Avenue Mac-Mahon, Paris, 75017, France), an affiliate of GoCardless Ltd (company registration number 834 422 180, R.C.S. PARIS), is authorised by the ACPR (French Prudential Supervision and Resolution Authority), Bank Code (CIB) 17118, for the provision of payment services.