Remittance advice
Remittance advice is a note a customer sends with a payment to tell the seller which invoices it covers.
Remittance advice is a short message from a buyer that says, in effect, "here's what this payment is for." When a client pays several invoices at once or sends money by bank transfer, this note tells you which invoices the payment settles. It saves the seller from guessing and makes matching payments to invoices far easier.
What it means
Remittance advice accompanies or follows a payment to explain how it should be applied. It lists the invoice numbers being paid, the amounts, and often the payment method and date.
It's especially useful when a single transfer covers multiple invoices, or when bank statements show only a lump sum with no detail. The note helps the seller reconcile their books, mark the right invoices as paid, and avoid chasing money that has actually arrived.
What it includes
A remittance advice is simple but should carry enough detail to match the payment.
- The invoice number(s) the payment covers
- The amount paid against each invoice
- The payment date and method (bank transfer, card, check)
- The payer's name or account reference
Example
A client transfers $3,000 to settle three invoices and emails a remittance advice noting it pays INV-0010 ($1,000), INV-0011 ($1,200), and INV-0012 ($800). You can now mark all three as paid with no guesswork.
With hosted payment links in Platybooks, much of this happens automatically: when a client pays an invoice online, its status updates on its own, so you don't have to reconcile by hand.
Frequently asked questions
Is remittance advice required?
No, it's not mandatory, but it's a courtesy that makes reconciliation much easier, especially for lump-sum bank transfers. Online payment links reduce the need for it because they tie each payment to a specific invoice automatically.
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