Remittance
BasicsPayment sent by a buyer to a seller, typically with advice detailing which invoices are being paid.
Detailed Explanation
Remittance refers to the payment sent to settle an invoice or account balance. A remittance advice is a document accompanying the payment that details which invoices are being paid, payment amount, method, and date. This helps sellers match payments to invoices and update accounts receivable accurately. Electronic remittance advice is common in automated payment systems, while paper remittance slips may accompany checks.
Examples
- A remittance advice noting payment of invoices #1001, #1002, and #1003
- Electronic remittance advice sent with ACH payment
Quick Q&A
What is Remittance?
Payment sent by a buyer to a seller, typically with advice detailing which invoices are being paid.
What does "Remittance" mean?
Remittance refers to the payment sent to settle an invoice or account balance. A remittance advice is a document accompanying the payment that details which invoices are being paid, payment amount, method, and date. This helps sellers match payments to invoices and update accounts receivable accurately. Electronic remittance advice is common in automated payment systems, while paper remittance slips may accompany checks.
When is Remittance used?
A remittance advice noting payment of invoices #1001, #1002, and #1003 ; Electronic remittance advice sent with ACH payment