Remittance Advice: What It Is, Example and Free Template

A remittance advice is a short note a customer sends to a supplier to say they've paid, and which invoices the payment covers. It's what lets you match a bank deposit to the right invoice, especially when one payment covers several invoices or is less than you expected. It isn't legally required and it isn't a receipt; it's a courtesy that makes reconciliation fast.

This guide explains what a remittance advice includes, how it works with Australian payment methods (bank transfer, PayID and BPAY) and US ones (ACH, cheques and payment apps), what to do when the payment doesn't match the invoice, and how to spot fake "remittance advice" emails. There's a worked example and a copy-ready template below.

What is a remittance advice?

A remittance advice (sometimes called a remittance slip, payment advice or simply a "remittance") is a document from the payer to the payee confirming a payment and explaining what it's for. The customer sends it when they pay; the business receiving the money uses it to mark the right invoices as paid.

"Remittance" on its own just means money sent. "Remittance advice" is the explanation that travels with it, or arrives by email shortly afterwards.

If you're a sole trader or small business, you'll usually receive remittance advice rather than send it. Larger clients' accounts payable teams send them automatically when they run a payment batch. You'd send one yourself when you pay a supplier, or when you pay several invoices at once.

What a remittance advice includes

A useful remittance advice has five blocks of information:

• Payer: the customer's business name and contact details.
• Payee: your business name, and sometimes your supplier or vendor number in their system.
• Payment: the date, total amount, method (bank transfer, BPAY, card, cheque, ACH) and the payment reference.
• Invoices paid: each invoice number, its date and amount, and the amount applied to it.
• Adjustments: any credit notes, discounts, deductions or withheld amounts, with a short reason, plus any balance still outstanding.

The invoices-paid block is the important part. Without it, a single payment of $2,750 can't be matched to the three different invoices it might be covering.

Remittance advice example

Here's a remittance advice for one payment covering two invoices, less a credit note:

Payment by bank transfer on 7 October 2026, reference "INV1041 INV1043". The customer has paid both invoices in full and deducted the $150 credit note they were issued, so the deposit is $2,750 rather than $2,900. Without the remittance advice, that $150 gap would look like a short payment.

How remittance works with Australian payment methods

Most Australian payments don't come with a separate document; the "remittance" is the reference the payer types in. Each method allows a different amount of information, which is why short invoice numbers matter:

If you invoice through a bank transfer, ask clients to use the invoice number as the reference, and print that request next to your bank details. For multi-invoice payments, a separate emailed remittance advice is still the clearest option. PayID can be an email address, phone number or ABN, which is easier for clients to type than a BSB and account number. See our guide to adding PayID, BPAY and bank transfer to invoices.

How remittance works in the US

• ACH (CCD+): carries one addenda record of up to 80 characters, usually just an invoice number.
• ACH (CTX): can carry up to 9,999 addenda records, including a full electronic remittance (the EDI 820 format), which is why large corporate payers use it.
• Cheques: usually arrive with a detachable remittance stub listing the invoices paid.
• Zelle, Venmo and similar apps: a free-text memo; ask clients to include your invoice number.

A note on healthcare: in US medical billing, "remittance advice" (or electronic remittance advice, ERA) means an insurer's explanation of a claim payment. That's a different document from the one described here.

Remittance advice vs invoice vs receipt vs statement

These four documents are easy to mix up. Here's who sends each, and what it proves:

A remittance advice says "we've sent this money for these invoices". It isn't proof the money arrived, which is why you still check your bank before marking an invoice paid. A receipt is your confirmation back to the customer. For the differences in detail, see invoice vs receipt and our guide to the statement of account.

When the payment doesn't match the invoice

This is where a remittance advice earns its keep. Here's what to do in the most common mismatches:

If a client part-pays without explanation, see what to send after a partial payment, and for wider reconciliation, our guide to payment reconciliation.

Is it a scam? Fake remittance advice emails

"Remittance Advice.pdf" and "Payment Remittance" emails are a common phishing lure aimed at Australian businesses, because people expect them and open them. Australian email security firm MailGuard has documented several waves of fake remittance emails linking to credential-stealing pages. Before you open the attachment or click a link, check:

1. Do you know the sender? A real remittance comes from a client you've invoiced, not an unfamiliar address.
2. Does it mention your real invoice numbers and amounts? Fake ones are vague.
3. Is it asking you to log in? A remittance advice never needs you to sign in to view it.
4. Has the money actually arrived? Check your bank or payment provider directly, not through a link in the email.

How to send a remittance advice

If you're paying a supplier, a remittance advice takes a minute and saves them a phone call:

1. Pay the invoice or invoices.
2. Note the payment date, amount, method and reference.
3. List each invoice paid and the amount applied, plus any credit notes or deductions with a reason.
4. Email it to the supplier's accounts address, or attach it to the payment if your bank supports it.

Remittance advice template

Copy this into an email or document and fill it in:

REMITTANCE ADVICE
From: [Your business name], [ABN or tax ID], [email]
To: [Supplier name]
Payment date: [date] · Amount: [total] · Method: [bank transfer / BPAY / card / ACH / cheque] · Reference: [reference]

Invoices paid:
- [Invoice number], dated [date]: [amount paid]
- [Invoice number], dated [date]: [amount paid]

Adjustments: [credit note number or deduction, amount, reason]
Total paid: [total]
Balance remaining: [amount, if any]
Questions: [name, email, phone]

Make remittance easier for your clients

You can't control whether a client sends a remittance advice, but you can make matching easy:

• Keep invoice numbers short so they fit an 18-character bank reference. See invoice numbering best practices.
• Print your payment details and preferred reference on every invoice, right next to the total.
• Use one invoice per job where possible, so payments map cleanly.
• Send a statement when a client's payments get out of step, so both sides see the same balance.

InvoiceSonic lets you mark invoices paid or part-paid, keeps a client's payment history in one place, and sends automatic reminders for what's still outstanding. Start with the free invoice generator, or see the invoice generator for Australia.

Frequently asked questions

What is a remittance advice?
A remittance advice is a note from a customer to a supplier confirming a payment and listing which invoices it covers, including any deductions or credits. It helps the supplier match the payment to the right invoices.

Who sends a remittance advice, the payer or the payee?
The payer, meaning the customer, sends it to the payee, the business being paid. If you're a sole trader, you'll usually receive remittance advices from larger clients rather than send them.

Is a remittance advice mandatory?
No. A remittance advice is a professional courtesy, not a legal requirement. Many large businesses send them automatically, while small clients often just put the invoice number in the payment reference.

Is a remittance advice proof of payment?
Not on its own. It says a payment has been made or scheduled, but it doesn't prove the money arrived. Always confirm the deposit in your bank or payment provider before marking an invoice paid.

What's the difference between a remittance advice and a receipt?
The customer sends a remittance advice to say what they've paid for. The supplier sends a receipt to confirm the payment was received.

What should I do if the remittance amount doesn't match my invoice?
Check the remittance for deductions such as credit notes, discounts or bank fees. If the difference isn't agreed, contact the client before sending a reminder, and record any remaining balance as outstanding.

What reference should a client use when paying by bank transfer?
Your invoice number. A standard Australian bank transfer allows an 18-character reference, so short invoice numbers like INV-1041 fit. PayID and Osko payments allow up to 280 characters, enough for several invoice numbers.

Is a "remittance advice" email a scam?
It can be. Fake remittance emails are a common phishing tactic. A genuine one comes from a client you've invoiced, mentions your real invoice numbers and amounts, and never asks you to log in to view it.