• Remittance advice is a document sent with or after payment that tells suppliers which invoices are being paid.
• It’s especially useful for payments covering multiple invoices, partial payments, or businesses with high transaction volumes.
• Benefits include faster cash application, fewer disputes, and a clearer audit trail.
• A typical remittance advice includes payer and payee details, payment date, method, amount, and invoice numbers.
• Flex simplifies remittance management: Bill Pay schedules and tracks payments with auto-attached remittance details, while the Flex Credit Card provides 60-day float to ease cash flow.

The following article is offered for informational purposes only, and is not intended to provide, and should not be relied on, for legal or financial advice. Please consult your own legal or accounting advisors if you have questions on this topic.

When a business pays a supplier, it’s not always enough to simply send money. Suppliers often need supporting documentation to know which invoice or claim the payment applies to. That’s where remittance advice comes in.

In this article, we’ll explain what remittance advice is and why it’s important, walk through the details included in these documents, and provide a remittance advice example. We’ll also share how Flex’s AP automation solutions like Bill Pay and the Flex Credit Card can help you manage remittances and payments more efficiently.

What is Remittance Advice?

Remittance advice is a document sent from the payer to the payee along with (or shortly after) a payment. Its purpose is to let the recipient know what the payment is for, ensuring funds are correctly matched to outstanding invoices or claims.

Think of it as a “receipt” from the payer’s side. It explains not just that money was sent, but how it should be applied.

Why Remittance Advice is Important

While optional, remittance advice helps businesses keep transactions clear and accurate. It is especially useful when:

• A single payment covers multiple invoices
• Payments are made for partial amounts
• The payee handles high transaction volumes
• There is a need to reduce reconciliation errors

For both payer and payee, this document:

• Improves cash application speed
• Reduces follow-up questions and disputes
• Creates a clear audit trail for finance teams

What’s Included in Remittance Advice?

A proper remittance advice document should capture the most relevant transaction details. While the format can vary, most include:

• Payer details (business name, address, and contact information)
• Payee details (supplier or vendor receiving funds)
• Payment amount
• Date of payment
• Invoice or claim number being paid
• Payment method (ACH, check, wire, card, etc.)
• Notes or adjustments (e.g., if part of the invoice is still outstanding)

Here’s a quick overview:

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How Flex Can Help With Remittance Advice

While remittance advice documents are straightforward, managing them at scale can be challenging. That’s where Flex can help:

• Flex Bill Pay lets you schedule and track vendor payments while automatically attaching remittance details.
• The Flex Credit Card provides 60 day float, helping you manage cash flow while ensuring suppliers still receive timely, documented payments.
• By consolidating payments and documentation in one platform, Flex reduces reconciliation friction for both payers and payees.

Final Thoughts

Remittance advice may not be the flashiest document in finance, but it plays a key role in keeping transactions clear, accurate, and efficient.

• It tells suppliers exactly which invoices are being paid.
• It helps both sides keep clean records.
• It reduces errors and speeds up reconciliation.

By pairing remittance advice with tools like Flex Bill Pay and the Flex Credit Card, businesses can simplify payment processes and focus on growth rather than paperwork.