Remittance advice

Remittance advice

"'In business transaction, a remittance advice is a letter sent by a customer to a supplier, to inform the supplier that his invoice has been paid. If the customer is paying by cheque, the remittance advice often accompanies the cheque.

Remittance advices are not mandatory, but they are seen as a courtesy, because they help the supplier's accounts department to match invoices with payments. The remittance advice should therefore specify the invoice number(s) for which payment is tendered.

Most companies' invoices are designed so that customers return a portion of the invoice, called a remittance advice, with their payment. The employee who opens the incoming mail should initially compare the amount of cash received with the amount shown on the remittance advie. If the customer does not return a remittance advice, an employee prepares one. Like the cash register, the remittance advice serves as a record of cash initially received.


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