A remittance advice can arrive as an email with a PDF, a notification from the customer's payment system, a paper slip sent with a check or an EDI 820 file. Some companies call it a payment advice or payment remittance. In the UK, many suppliers receive a BACS remittance advice when a customer pays by Bacs Direct Credit. Whatever the format, it only tells you that the customer says it has paid, so check that the money has arrived before you treat the invoice as settled.
In US healthcare the term has a narrower meaning. A Medicare remittance advice tells a provider whether each claim was paid in full, partly paid or denied, and can arrive as an electronic remittance advice (ERA). This entry covers the business-to-business meaning.
What a remittance advice contains
| Field | Example |
|---|---|
| Payer | Customer name and its account number with you |
| Payment date | October 6, 2026 |
| Payment method and reference | Bank transfer, reference PAY-88412 |
| Total paid | $24,610.00 |
| Invoices paid | 4471 ($9,800), 4475 ($6,250) and 4482 ($8,900) |
| Deductions | Credit note CN-52 ($340) |
| Contact | Name and email of the person in accounts payable |
The deductions line matters most for matching. Early payment discounts, credit notes, withholding tax and short payments for disputed items all make the amount received differ from the invoices, and the remittance advice is often the only place the customer explains why.
Who sends a remittance advice
The payer sends it, usually the customer's accounts payable team. Many accounting and payment systems create these remittance documents after each payment run and email them to the address on the supplier record. If yours do not arrive, ask customers to add your accounts receivable email address to that record, and print it on your invoices and statements of account.
How remittance advice helps with cash application
Cash application means matching each payment received to the invoices it pays and recording it in your ledger. A bank transfer usually carries only a short reference, so when one payment covers several invoices, the remittance advice tells you how to split it. Until a payment is applied, the invoices it paid still look open, which inflates your aging report and can trigger a dunning letter to a customer who has already paid.
Example. A customer with open invoices of $9,800, $6,250, $8,900 and $3,300 sends $24,610. No single invoice or combination of invoices adds up to that amount. The remittance advice shows that the customer paid the first three, $9,800 + $6,250 + $8,900 = $24,950, and deducted credit note CN-52 for $340. That leaves $24,950 minus $340, or $24,610, and the $3,300 invoice stays open.
Remittance advice scams
Because accounts teams expect remittance emails, fraudsters use fake ones as phishing bait. A typical fake says a payment has been sent and asks you to open an attachment or follow a link to see the details. The file or link can install malware on your computer or lead to a fake sign-in page that collects your password.
- Check that the sender's address matches the customer's real domain, and treat unexpected links and attachments with suspicion.
- If in doubt, contact the customer through details you already hold or its official website, not those in the email, as the National Cyber Security Centre advises.
- Confirm that the money has reached your bank account before you mark an invoice as paid or release goods.
- In the UK, forward suspicious emails to report@phishing.gov.uk, the NCSC reporting service. Report any loss to Report Fraud, which replaced Action Fraud in December 2025, or in Scotland to Police Scotland on 101.
What to do when a payment arrives without a remittance advice
- Look for an open invoice with exactly the same amount, then for combinations of invoices, with and without known credit notes and discounts.
- Read the payment reference for invoice numbers, purchase order numbers or your customer number.
- If you still cannot tell, record the payment on the customer's account as unapplied cash rather than guessing an invoice, so the account balance stays right.
- Ask the customer's accounts payable team for the remittance advice and hold reminders on the invoices the payment probably covers.
- If you cannot identify the payer at all, hold the money in a suspense account while you investigate.
Sunbay matches incoming payments to invoices using the data in your ERP or accounting system and stops reminders on invoices that are paid. Customer replies, such as a note that a payment is on its way, stay next to the invoice they concern. The integrations page lists the ERP, accounting and CRM systems it connects to.
Frequently asked questions
Is a remittance advice proof of payment?
No. It is the customer's notice that a payment has been sent. Treat an invoice as paid only once the money has reached your account and been matched to it.
Who sends a remittance advice, the buyer or the seller?
The buyer, or whoever pays the invoice, sends it to the seller. The seller sends invoices and statements and uses the remittance advice to apply the payment.
What is a BACS remittance advice?
It is a remittance advice for a payment made by Bacs Direct Credit, a UK system many businesses use to pay suppliers. It may arrive before the money does, so check your account before you mark the invoice as paid, and treat unexpected ones with care.
What is the difference between a remittance advice and a receipt?
A remittance advice comes from the payer and says a payment was sent. A receipt comes from the supplier and confirms that the payment was received.
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