Remittance advice
What is a remittance advice?
A remittance advice is sent by the customer with a payment.
It lists the invoices and credit notes the payment covers.
Once the payment is matched, the invoices it covers are no longer outstanding.
Example
A café pays a printer £360.00. Its remittance advice lists two invoices, for £240.00 and £180.00, less a credit note for £60.00.
Why it matters
Without it, the seller has to guess which invoices have been paid.
Practise it
Practise it nowWhat a remittance advice tells you
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].