Remittance Advice Template
A remittance advice is the note a customer (the payer) sends to a supplier when it pays, saying which invoices the payment covers, how much went to each one and why anything was deducted. It is not an invoice, a receipt or a statement: the supplier issues those. Use this template when one bank transfer settles several invoices, when you pay less than the invoice total because of a credit note, or when the payment reference on the transfer is too short to explain the allocation. The download is an editable HTML file with fields for the payer, payee, payment date, payment reference, payment method, invoice references, amounts paid and deductions. Fill it in your browser, then print it or save it as PDF and email it on the day you send the money.
Preview this editable document
Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.
What This Template Includes
- Payment date
- Payment reference
- Payer
- Payee
- Invoice references
- Amounts paid
- Deductions
- Payment method
- Total paid and currency
- Invoices not included in this payment, with reason
- Contact for payment queries
How to fill in this Remittance Advice
- Download the template. It opens as an editable HTML file in your browser.
- Replace each bracketed field with your details. Totals are not calculated for you, so check the arithmetic.
- Print it or save it as a PDF from your browser. InvoiceQuickly does not create or store this document type.
Payment terms and the remittance advice
A remittance advice does not set payment terms; it reports a payment made under the supplier's terms. Send it on the day the payment is released, not when it is approved internally, so the supplier is not told to expect money that has not left your account yet. If you pay early to take a settlement discount the supplier offered (for example 2/10 net 30), show the discount as its own deduction line against the invoice it relates to, so the supplier can see the discount was taken inside the agreed window rather than as an unexplained short payment.
Tax and the remittance advice
A remittance advice is not a tax document. It does not replace the supplier's VAT, GST or sales tax invoice, and it is not evidence that tax was charged or paid. When a deduction relates to tax, for example a credit note that reduces both the net amount and the VAT on it, quote the credit note number so both sides can match the tax adjustment to the supplier's own documents. If the law where you operate requires the payer to withhold tax from the payment, show the gross invoice amount, the amount withheld and the net amount paid on separate lines; any certificate of tax withheld is a separate document issued under that country's rules, not part of the remittance advice.
Industry context (2026)
The reason remittance advices exist is that payment rails carry very little text. In the euro area, the European Payments Council's QR-code guidelines for SEPA credit transfers (EPC069-12, version 3.0, 2022) allow either a structured creditor reference of up to 35 characters or unstructured remittance information of up to 140 characters, not both. In the US ACH network, Nacha's Third-Party Payments banking convention explains that a CCD payment may carry only one addenda record with an 80-position payment-related information field (commonly called CCD+), while the CTX format allows up to 9,999 addenda records which can carry certain X12 or UN/EDIFACT messages in full. That is enough for one invoice number, but not for a payment that settles twenty invoices with three deductions, so a separate remittance advice fills the gap. In US healthcare the term means something narrower: health plans send providers an electronic remittance advice in the X12 835 standard, as described by the Centers for Medicare and Medicaid Services, to explain claim payments. This template is for ordinary business-to-business supplier payments, not for insurance claim remittances.
Worked example
Harbor Lane Cafe Ltd owes its supplier, Northfield Coffee Roasters, for four invoices: INV-0412 (2 September 2026, £1,250.00), INV-0431 (16 September, £980.00), INV-0447 (30 September, £1,420.00) and INV-0455 (14 October, £640.00). Northfield has already issued credit note CN-0019 for £180.00 against INV-0447 for two damaged 5 kg bags. On 27 October 2026 the cafe sends one bank transfer of £3,470.00 with the reference HLC-REM-2610 and emails a remittance advice with the same reference. Line 1: INV-0412, invoiced £1,250.00, paid £1,250.00. Line 2: INV-0431, invoiced £980.00, paid £980.00. Line 3: INV-0447, invoiced £1,420.00, less CN-0019 £180.00, paid £1,240.00. Total paid: £1,250.00 + £980.00 + £1,240.00 = £3,470.00, which matches the bank transfer. Under 'Invoices not included' the advice says: INV-0455, £640.00, held pending a replacement for a short delivery, contact accounts@harborlanecafe.example. Without the advice, Northfield would see £3,470.00 arrive against £4,290.00 of open invoices and have to guess which £820.00 was missing and why. With it, Northfield applies three payments, closes three invoices and knows exactly which delivery issue to resolve before INV-0455 is paid.
Common mistakes to avoid
Reporting only the total
A single line saying 'Payment of £3,470.00 for outstanding invoices' leaves the supplier to guess the allocation. List each invoice number with the amount applied to it, so the supplier can close the right invoices and see what is still open.
Deducting without a reason
Short payments with no explanation look like errors and trigger reminders and phone calls. Every deduction needs a reason and a reference, such as a credit note number, an agreed discount or a returns note.
Sending the advice before the money moves
Emailing a remittance advice when a payment run is approved, not when it is released, tells the supplier to expect funds that may arrive days later or not at all. Send it with or after the payment.
Suppliers treating the advice as proof of payment
A remittance advice says a payment was made; only the bank statement shows it arrived. Mark invoices paid when the funds clear, and compare the amount received with the advice total.
Including sensitive bank details
Full account numbers in an emailed document create fraud risk if the email is intercepted or forwarded. Use the payment reference and the last four digits only, and confirm any request to change bank details by phone using a number you already hold.
Invoicing Tips
- 1List every invoice the payment touches, one per line, even when one invoice is paid in full and the next only in part. The supplier allocates the money from your list, not from the bank total.
- 2Quote the supplier's invoice numbers exactly as printed (for example INV-0447, not 447 or 'September invoice'). Your own purchase order or voucher numbers are a useful second reference, not a substitute.
- 3Give every deduction a reason and a document reference: credit note number, agreed discount, returned goods note or disputed delivery.
- 4Use the same payment reference on the bank transfer and on the remittance advice so the supplier can tie the two together when the money arrives.
- 5Never put full bank account numbers or card details in an emailed remittance advice. The last four digits of the account paid from or to are enough for matching.
- 6Keep a copy with the payment record. If the supplier later chases an invoice, the remittance advice shows exactly what you told them and when.
Related Resources
- All invoice and business document templates: invoices, receipts, statements, credit and debit notes
- Invoice vs receipt: which document the supplier issues before and after payment
- How to handle partial payments: what the supplier does with a short payment
- Invoice record-keeping guide
Frequently Asked Questions
What is a remittance advice?
A remittance advice is a notice from a customer to a supplier that a payment has been made, with the details the supplier needs to apply it: payment date, amount, method and reference, the invoices it covers, the amount applied to each and any deductions. It is a commercial courtesy that speeds up the supplier's reconciliation.
Who sends a remittance advice, the payer or the supplier?
The payer sends it. The supplier issues the invoice, and the customer replies with a remittance advice when it pays. A supplier that wants to confirm money received issues a receipt instead.
Is a remittance advice the same as a receipt?
No. A remittance advice comes from the payer and says what is being paid. A receipt comes from the supplier and confirms that money was received. A supplier should check that the funds have actually arrived in its bank account before marking invoices paid, because a remittance advice is not proof of payment.
How is a remittance advice different from a statement of account?
A statement of account comes from the supplier and lists every invoice, payment and credit on the customer's account over a period, ending in a balance owed. A remittance advice comes from the customer and covers one payment only. Customers often use the supplier's statement to decide what to pay, then send a remittance advice showing which lines they paid.
What does email remittance advice mean?
It is the same document sent by email instead of attached to a paper cheque. Many accounts payable systems email a remittance advice automatically when a bank transfer is released. Treat unexpected remittance emails with care: check that the sender is a real customer before opening attachments, and never change bank details because of one.
What is another term for remittance advice?
Common names are remittance slip, remittance notice, payment advice and payment notification. On a paper bill, the tear-off section the customer returns with a cheque is also called a remittance slip or stub.
Is a remittance advice legally required?
Usually not. In most places it is a business practice rather than a document tax law requires, although a contract or a large customer's supplier terms may ask for one. Check your own contract and local rules if you are unsure.
Can InvoiceQuickly create a remittance advice?
No. InvoiceQuickly is for the supplier side: it creates invoices, and on Pro also estimates and credit notes. Use the editable HTML template on this page to write a remittance advice. If you are the supplier receiving one, InvoiceQuickly lets you record full or partial payments against each invoice on every plan.