Remittance Advice
Remittance advice is a document sent by a payer to a payee that identifies which invoices are being paid with an accompanying payment. It enables accurate cash application by providing invoice-level detail.
Key Details
- Typically includes invoice numbers, amounts, and any adjustments or deductions
- May arrive via email, EDI, or alongside wire/ACH payment details
- OCR and AI technologies automate extraction of remittance data
- Critical for accurate cash application when payments cover multiple invoices