Remittance Advice Template
A remittance advice tells you exactly which invoices a payment covers. It turns a mystery deposit into an instant reconciliation.
What's included
- Map a single payment to the invoices it settles
- Eliminate guesswork when reconciling lump-sum payments
- Show any deductions or credits applied to the payment
- Request remittance advice from customers as standard
- Speed your reconciliation and keep debtors accurate
5 min read
Why this template matters
When a customer pays several invoices in one transfer, your bank statement shows only a lump sum. Without a remittance advice, you are left guessing which invoices it clears — and guessing wrong leaves invoices wrongly marked paid or unpaid. A remittance advice is the customer telling you, in writing, exactly how to allocate their payment. It converts a mystery deposit into a one-minute reconciliation.
It cuts both ways. If you pay suppliers in batches, sending them a remittance advice is a courtesy that gets your own account reconciled correctly and keeps the relationship smooth. Either way, the document does one job well: it ties money received to the invoices it is meant to settle.
The template
REMITTANCE ADVICE
From: [Payer name] ABN: [11 22 333 444]
To: [Supplier name]
Payment date: 20 March 2026
Payment method: EFT
Payment ref: [Bank reference]
------------------------------------------------------------
Invoice Invoice date Amount Deduction Paid
------------------------------------------------------------
INV-0101 01 Feb 2026 1,100.00 0.00 1,100.00
INV-0117 05 Mar 2026 2,200.00 -200.00 2,000.00
INV-0124 22 Mar 2026 660.00 0.00 660.00
------------------------------------------------------------
TOTAL PAID: 3,760.00
Deduction note: INV-0117 less credit note CR-0009 ($200).
This payment settles the invoices listed above in full.How to use it
List every invoice the payment covers, with its date and amount, then show the total paid — which must equal the actual transfer. If the payment is reduced by a credit note or agreed deduction, show it on the relevant line and note why, so the figures reconcile exactly. The whole point is that your accounts team can match the lump sum to specific invoices without a single phone call.
Make it a habit to request a remittance advice from customers who pay in batches — many will send one if asked, and it saves you hours of detective work. Tie each line back to the original payment receipt and the underlying invoices so your debtor ledger always reflects the truth.
Tips
- List every invoice the payment covers so a lump sum reconciles in minutes.
- Make the total paid equal the actual transfer, deductions shown and explained.
- Request remittance advice from any customer who pays in batches.
- Tie each line back to the invoices and receipts so your ledger stays accurate.
FAQ
Who sends a remittance advice — the payer or the payee?
The payer sends it, telling the payee which invoices the payment covers. As a supplier, ask your customers to send one; as a buyer paying in batches, send one as a courtesy.
What if the payment is short of the invoice total?
Show the deduction on the relevant line and explain it — usually a credit note or agreed adjustment. The total paid must still equal the actual transfer so everything reconciles.
Is a remittance advice the same as a receipt?
No. The payer issues a remittance advice to say what a payment covers; the payee issues a receipt to confirm payment was received. They complement each other in reconciliation.
Templates are a head start — not legal advice
Customise to your business and have important documents reviewed. Need to recover a debt? We can help.