What Is a Remittance Advice? The Document That Tells a Vendor How to Apply Your Payment

A remittance advice is the document (or email, or data file) that accompanies or follows a payment and tells the vendor which invoices the payment covers. It's the small detail that makes the difference between a payment that gets applied correctly and one that creates reconciliation work for everyone. Here is what a remittance advice is, why it matters, and how to send one that actually solves the vendor's problem.