{"id":4207,"date":"2021-03-18T15:11:26","date_gmt":"2021-03-18T14:11:26","guid":{"rendered":"https:\/\/www.financetuts.com\/?p=4207"},"modified":"2021-06-15T12:41:56","modified_gmt":"2021-06-15T10:41:56","slug":"remittance-advice","status":"publish","type":"post","link":"https:\/\/www.financetuts.com\/remittance-advice\/","title":{"rendered":"Remittance Advice: A Complete Guide [+ Template + Examples]"},"content":{"rendered":"\t\t
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Everything you need to know about a remittance advice | statement | slip | note | letter<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Definition: What Is a Remittance Advice?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Remittance advice is a paper or electronic notification of a payment sent by payer to a payee, for example:<\/strong><\/p>

  1. Buyer to a seller<\/strong><\/li>
  2. Employer to an employee<\/strong><\/li>
  3. Financial institution to a receiver of funds<\/strong><\/li>
  4. Insurance provider to a receiver of an insurance claim<\/strong><\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    A payment remittance advice is also occasionally referred to as a payee advice<\/strong> because it is an advice which lets a payee know that a payer has made a payment to the payee\u2019s account with a bank transfer, check, card or another payment method.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Other terms used for a remittance advice include:<\/p>

    • remittance (advice) statement<\/strong><\/li>
    • remittance (advice) slip<\/strong><\/li>
    • remittance (advice) note<\/strong><\/li>
    • remittance (advice) letter<\/strong><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      What Is Remittance?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      \n\t\t\t\t\tRemittance is an amount of funds that is transferred from one party to another using any form of payment made by organizations and private individuals for any purpose, from invoice and bill obligations, through gifts, to money sent by foreign workers to their families abroad.\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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      <\/div>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Is a Remittance Advice a Proof of Payment?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      \n\t\t\t\t\tRemittance advice is not a proof of payment, but only a notification that a payment was sent or processed. For example, a bank transfer may not reach the intended recipient for a number of reasons, such as incorrect bank details provided or insufficient funds available on a payer\u2019s account.\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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      That is why external auditors rely on an actual bank statement rather than a payment remittance advice to confirm a receipt of cash.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      Types: Who Uses a Remittance Advice?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Let\u2019s take a look at the most common examples of remittance advice use cases:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      Business Remittance Advice<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      Businesses send remittance notes for payments to their suppliers, vendors, employees and contractors.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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      • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tA buyer provides a seller with a remittance advice to confirm the amount paid and which invoices the payment relates to so that the vendor can apply the payment to the specific invoices included in the customer\u2019s accounts receivable balance. <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
      • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tAn employer provides its employees and contractors with payroll remittance slips so they can verify their paycheck amounts received.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        Bank Remittance Advice<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        A bank, money transfer company, credit union, security broker or another financial institution that makes a payment on behalf of its client can also send the associated remittance advice to the payee who will receive the funds.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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        Insurance Remittance Advice<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        Remittance statements are also issued by insurance claim processors\u2013like private and public insurers\u2013when they make payments to the recipients of insurance claims.<\/p>

        For example, Electronic Remittance Advice (ERA) and Electronic Explanation of Benefits (eEOB) are statements used to notify Medicare healthcare providers and patients in the United States of a payment, rejection, denial or adjustment in regards to their claims.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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        Format: How Is Remittance Advice Issued?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        Remittance advice is issued either in hard-copy paper or soft-copy electronic format:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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        • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t1. Paper: Paper document sent out by post<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
        • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t2. Email: Electronic document sent out manually by email <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t
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          For example, employees and contractors can receive a payroll remittance advice from an employer as a paper paycheck stub, email document, or a statement available through an online application like a payroll portal.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          Post<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          The most basic type of a remittance advice is a physical paper-based document sent through mail:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          1. Letter<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          Traditional letter stating the amount paid, the invoice number, along with any other relevant details.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          2. Removable slip<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          Some vendors make it easier for customers to send the required information in the correct format back with a payment by attaching a removable remittance slip to an invoice.<\/p>

          The payer can simply detach the remittance slip from the document at the perforated line, complete it with the relevant details, and return it to the provided address.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          Email<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          Compared to traditional post, email is a faster option of sending out remittance letters, especially if you use:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          1.\u00a0 Email templates<\/strong> (e.g., Microsoft Excel or Word, Google Sheets or Docs) to maximize efficiency when creating and customizing the document for each recipient.<\/p>

          2.\u00a0 Appropriate and correct email address<\/strong> (e.g., seller\u2019s accounting or Accounts Receivable department) so that the email does not get delayed or even lost when sent to a general company email address.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          Even if you pay online, you can still help the seller match your payment with the correct invoice in its accounts receivable by sending an email to confirm the payment with the associated invoice reference numbers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          The most efficient way to issue a remittance advice is through a software program that does it for you automatically<\/strong>.<\/p>

          Modern accounting<\/strong> or ERP systems<\/strong> can automatically generate remittance notes and email them to any number of payment recipients.<\/p>

          There are also scannable<\/strong> remittance slips that can be easily scanned for online tracking and electronic record keeping.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          Template: What to Include on a Remittance Advice?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          10<\/strong> things every remittance advice should include:<\/p>

          1.\u00a0<\/strong> Payer name<\/p>

          2.\u00a0<\/strong> Payer address and contact details<\/p>

          3.\u00a0<\/strong> Payee name<\/p>

          4.\u00a0<\/strong> Payee address and contact details<\/p>

          5.\u00a0<\/strong> Method of payment<\/p>

          6.<\/strong>\u00a0 Amount of payment<\/p>

          7.\u00a0<\/strong> Date of payment by the payer<\/p>

          8.\u00a0<\/strong> Expected date of payment receipt by the payee<\/p>

          9.\u00a0<\/strong> Reference information (e.g., number and date of an original invoice, transaction, or insurance claim; employee number and payroll period; patient number)<\/p>

          10.\u00a0<\/strong> Tax information (e.g., tax number, gross and net amounts paid)<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          Example: Sample Remittance Advice <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          Here is a sample remittance advice email or letter:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          \n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tRemittance Advice Example<\/span>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<\/th>\n\t\t\t\t\t\t\t\t<\/thead>\n\t\t\t\t
          \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubject:<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tRemittance Advice \u2013 Payment Confirmation \u2013 [invoice or other reference number]<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>
          \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tBody:<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tFor your reference, this is to confirm that a payment of [amount] in respect of [invoice number or other reference] was made on [date] by [payment method] and so should arrive to your account [estimated time period].\n\nShould you have any further questions, please do not hesitate to contact us.<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>
          \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tSignature:<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tBest Regards,\n[contact details of a staff member or a department that deals with accounts payable queries]<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t<\/tbody>\n\t<\/table>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          Additional Requirements<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          In general, a remittance letter does not have to be lengthy or complicated, it just needs to include enough information to let the payee know how much<\/strong> the payer has paid for what<\/strong> and when<\/strong>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          However, the complexity and level of detail required for a remittance advice may increase depending on the method<\/em> and purpose<\/em> of the payment.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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          For example:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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            \n\t\t\t\t\t\t\t
          • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tInvoice quantity:<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
            \n\t\t\t\t
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            A single-invoice remittance slip is much more straightforward than a remittance statement of a large entity that can batch together hundreds<\/em> of invoice numbers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

            \n\t\t\t\t
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            • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tPayment method:<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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              More information is needed when you are settling an invoice with a check or a bank transfer, compared to an online payment in which most of your information is transmitted to the payee automatically<\/em>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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              • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tIndustry:<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                Remittance statements in the public<\/em> sector, specialized<\/em> fields or highly regulated<\/em> industries like healthcare and insurance can be very complex<\/em>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tPayroll:<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                  Payroll remittance slips are required, often by law<\/em>, to include a number of specific details, such as payroll period, employee earnings, contractor hourly pay, overtime, vacation pay, taxes and other deductions, pension and other contributions.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                  • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tSender's needs:<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                    Some sellers may request that a remittance advice is returned to them in a specific format, in which case they typically provide buyers with a template<\/em> (e.g., pre-filled detachable perforated part of an invoice, check stub, or standardized bank transfer order form\u2013often computer-readable).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                    • \n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\tInternal needs:<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                      In some cases, an entity may decide to prepare a remittance advice for its own internal<\/em> purposes only.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                      Accounts Receivable: How to Account for a Remittance Advice?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                      6 steps<\/strong> to process a buyer\u2019s remittance advice in a seller\u2019s accounts receivable:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                      1.\u00a0 Bank statement:<\/strong> Obtain a detailed bank account statement for the period.<\/p>

                      2.\u00a0 Remittance advice:<\/strong> Gather all remittance letters received for the period.<\/p>

                      3.\u00a0 Journal entry:<\/strong> Post double-entry journals to record the customers\u2019 payments in the general ledger:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                      \n\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t
                      \n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tPayment Received<\/span>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<\/th>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tDebit<\/span>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<\/th>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tCredit<\/span>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<\/th>\n\t\t\t\t\t\t\t\t<\/thead>\n\t\t\t\t
                      \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tDouble-entry<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tBank<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tAccounts Receivable<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/tr>
                      \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tReasoning<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tIncrease cash<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tReduce a customer\u2019s account balance<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/td>\n\t\t\t\t\t\t\t\t\t<\/tbody>\n\t<\/table>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                      Alternatively, review the system-generated transactions that automatically interfaced into the accounting software.<\/p>

                      4.\u00a0 Reconciliation:<\/strong> Investigate and correct any discrepancies, using the remittance advice documents as a reference to match bank transactions with the appropriate open invoices in accounts receivable.<\/p>

                      5.\u00a0 Aging:<\/strong> Review accounts receivable aging report by customer and follow up on any overdue payments.<\/p>

                      6.\u00a0 Records:<\/strong> Keep a record of all received remittance notes for reference purposes in case of any future discrepancies or disputes.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                      Pros & Cons of a Remittance Advice<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                      Advantage<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                      Even when a remittance advice is not a mandatory requirement, it gives the recipient the courtesy of knowing that the payment is on the way and helps match it with the specific accounts receivable invoice without having to contact the sender to find out what was included in the payment.<\/p>

                      In some industries, the use of a remittance statement is a standard and widely used practice.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                      Disadvantage<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                      With online payments, the need for and popularity of a remittance advice has plummeted.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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                      Sign up for our Newsletter<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                      Get more articles just like this straight into your mailbox.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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                      Related Posts<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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                      Everything you need to know about a remittance advice | statement | slip | note | letter Share on facebook Share on twitter Share on pinterest Share on linkedin Contents Definition: What Is a Remittance Advice? Remittance advice is a paper or electronic notification of a payment sent by payer to a payee, for example: […]<\/p>\n","protected":false},"author":1,"featured_media":4256,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wordproof_timestamp":false},"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/posts\/4207"}],"collection":[{"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/comments?post=4207"}],"version-history":[{"count":0,"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/posts\/4207\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/media\/4256"}],"wp:attachment":[{"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/media?parent=4207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/categories?post=4207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.financetuts.com\/wp-json\/wp\/v2\/tags?post=4207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}