How to Ask for Remittance Advice (and How to Send One)

This guide is for bookkeepers, AR clerks and office managers on both sides of a payment: the one trying to match money to invoices, and the one sending it.

What is remittance advice, in one sentence?

Remittance advice is a short note from the payer that says which invoices a payment covers, how much went to each, and any credits or deductions taken. It lets the vendor apply the money to the right invoices, a step called cash application.

When should I ask a customer for remittance advice?

Whenever a payment arrives and you can't tell what it is for. Common cases:

• One payment covers several invoices, and the total doesn't match any single one.
• The amount is short, because the customer took a credit, a discount or a deduction.
• The bank shows only a company name and an amount, with no invoice number.
• A large customer pays through a portal that sends remittance details to the wrong inbox.

Ask quickly. An unapplied payment makes your accounts receivable report wrong, and a customer may get a reminder for an invoice they already paid.

How do I write the email?

Keep it short, factual and easy to answer. Give them the details you have, and ask for the ones you don't.

Subject: Remittance details for your payment of $4,860.00 on Oct 14

Hi Jordan,

Thank you for your payment of $4,860.00, received on October 14 by ACH. To apply it correctly, could you send the remittance details: the invoice numbers it covers and the amount applied to each, plus any credits or deductions?

We have invoices 1042 ($2,400.00), 1047 ($1,980.00) and 1051 ($960.00) open, which total $5,340.00.

For future payments, sending remittance details to ar@yourfirm.com would help us apply them the same day.

Thanks,
Sam, Accounts Receivable

Never ask for bank account numbers by email, and never send them. Fake payment and remittance emails are a common fraud, so confirm any request to change payment details by phone.

Can ChatGPT write the request for me?

Yes, if you give it the facts and tell it not to add any. A four-part prompt works:

Role: You write accounts receivable emails for [FIRM].
Context: Payment received: [AMOUNT] on [DATE] by [METHOD] from [CUSTOMER]. Open invoices: [NUMBERS AND AMOUNTS]. Our AR email: [ADDRESS].
Task: Ask the customer's AP contact for remittance details for this payment.
Format: Under 120 words, polite and plain. Use only these facts. Don't suggest the customer made a mistake.

Then check every number against your records before you send. The Reply Faster lesson for accountants adds a step that makes ChatGPT list every claim in its draft next to the fact that supports it.

What should I include when I send remittance advice to a vendor?

When you are the payer, send it the same day you pay, to the vendor's AR address. Include:

1. Your company name and customer or account number with the vendor.
2. The payment date, method (ACH, check, card) and total amount.
3. Each invoice number and the amount applied to it.
4. Any credit memo, discount or deduction, with the reason.
5. A payment reference, such as the check number or ACH trace number.

Many accounting and bill-pay tools generate a remittance advice automatically when you pay. If yours does, check it has the invoice numbers before it goes out.

Who keeps the remittance copy?

Both sides should. The vendor keeps it as support for how the payment was applied. The payer keeps a copy with the payment record. Store it with the invoice and payment in your accounting system or document storage, so anyone checking the account later can see which invoices the money covered.

Key takeaways

• Remittance advice tells the vendor which invoices a payment covers and how much went to each.
• Ask for it as soon as a payment can't be matched, giving the date, amount and open invoices.
• When you pay, send invoice numbers, amounts, deductions and a payment reference.
• Never ask for or send bank details by email; verify changes by phone.
• Both payer and vendor keep a copy with the payment record.

Frequently asked questions

Is a remittance advice the same as a receipt?

No. A receipt comes from the seller to confirm payment was received. A remittance advice comes from the payer to explain what a payment is for.

What if the customer never sends remittance details?

Apply the payment to the oldest open invoices if your terms or policy allow it, note what you did, and tell the customer in writing so they can correct you.

Do I need remittance advice for a single invoice?

Usually not, if the amount matches exactly and the invoice number is in the payment reference. It matters most for combined or short payments.

Can a remittance advice email be fake?

Yes. Scammers send fake remittance emails with harmful links or attachments. Be wary of unexpected remittance emails from unknown senders, and check your bank to confirm a payment actually arrived.

Where can I go next?

Read What Is Dunning? for overdue reminders, and the lockbox entry for how banks capture remittance details.