Remittance

What is remittance?

Remittance refers to both the act of sending payment and the documentation that accompanies it. When a client pays your invoice, they might include remittance advice—a note or document indicating which invoice the payment covers. This helps you match incoming payments to the correct invoices.

Remittance advice

Remittance advice typically includes:

• Payer information — Who sent the payment
• Payment amount — How much was paid
• Invoice reference — Which invoice(s) the payment covers
• Payment date — When the payment was sent
• Payment method — Check number, transfer reference, etc.

Why remittance matters

When you receive payments—especially from clients with multiple invoices—remittance advice helps you apply money to the right invoices. Without it, you might have to guess which invoice a payment covers, leading to accounting confusion. Request remittance information when payment references aren't clear.