What is Remittance Advice?

Remittance advice is a notification — typically a short document or email — that accompanies or follows a payment. It tells the recipient which invoices are being paid and helps both parties reconcile their records.

A remittance advice note typically includes:

• The payer's name and details
• The payment date and method (bank transfer, cheque, etc.)
• A list of invoice numbers being paid
• The amount allocated to each invoice
• Any deductions (e.g., credit notes applied)
• The total payment amount

For freelancers, receiving remittance advice is particularly helpful when:

• A client pays multiple invoices in a single bank transfer
• A partial payment is made and you need to know which invoice it covers
• Deductions or credits have been applied that you need to verify

If you work with larger companies, their accounts department will often send remittance advice automatically when processing payments. For smaller clients, you may not receive one — in which case, matching the payment amount to your outstanding invoices manually is necessary.

Good invoicing software like OwnedWork can automatically match incoming payments to invoices, reducing the need for manual reconciliation even when formal remittance advice is not provided.