In the payments and banking industry, there are a wide variety of acronyms and abbreviations that...
What is remittance advice?
When dealing with invoices, it’s always beneficial to have more clarity over payments for both suppliers and customers. Issuing remittance advice slips can help to ensure a more secure process and allow suppliers to match an invoice to a payment. Not sure what remittance advice is? Continue reading to find out everything you need to know.
Remittance advice meaning
Remittance advice is a proof of payment document sent by a customer to a supplier or business. It is typically used when a customer wants to let a business know that an invoice has been paid. In some ways, remittance slips are similar to cash register receipts. They’re particularly useful when matching invoices up with payments.
Sending remittance slips isn’t a mandatory step in the payment process. However, they are appreciated by the business receiving the payment and slip, so they can better manage their financial records.
In the modern age of digital payments, remittance advice slips are somewhat unnecessary. However, once an invoice has been paid, an email confirming payment is also appreciated by businesses.
What does remittance mean?
Remittance derives from the term ‘remit’, which means to send back. It refers to a sum of money that is sent back or transferred to another party. It covers almost any type of payment, including bills and invoices, and is typically used for overseas payments.
Also, remittance can cover personal money transfers made to family and friends.
How to send a remittance advice slip
When sending a remittance slip, it’s best to send it via an email to an appropriate email address. Contact the supplier or company beforehand to double check the email address you need. Sending to a general group email address could see the remittance advice slip get lost within a pile of other documentation.
With Interbacs, as long as your payment data includes the information listed we can automatically generate a remittance advice within our software and it can either be printed or sent via email directly from the software.
What does a remittance advice slip include?
Remittance advice slips include several key pieces of information pertaining to the person or company involved, any addresses and details on the payment itself. Here is a full list of what’s needed on a remittance slip:
- Your name and address
- Supplier/business name and address
- Method of payment
- Payment amount
- Invoice number
Any remittance advice slip should be written up on a company letter headed paper and contain contact details for a member of your organisation who can deal with any queries the supplier may have upon receiving it.
Are there different types of remittance advice?
Just as there are varying ways for payments to be made by a company or person, there are different types of remittance advice slip, and they are:
- Basic remittance advice — A standard (or basic) note or letter stating the invoice number and the payment amount.
- Removable invoice advice — An invoice that comes with a removable remittance slip that customers are encouraged to fill in.
- Scannable remittance advice — Remittance advice slips that can be scanned for electronic records.
What is Bacs remittance advice?
Bankers Automated Clearing Services (Bacs) is an electronic system for making bank-to-bank transfers in the UK. A Bacs remittance advice is a remittance advice slip for a Bacs payment.
If you have received a Bacs payment remittance advice, this is an indication that a payment has been made to you. If you check your account, there should be a new payment in your account. On the other hand, if you’ve sent a Bacs payment to somebody else, it is a good idea to send Bacs remittance advice to confirm with your supplier that the payment has been made.
What to do if you receive a Bacs remittance advice but no payment?
Processing times for payments can vary, so there is a possibility that you could receive a Bacs remittance slip before actually receiving the payment. Bacs payments usually take three working days, so it is possible that the payment is on its way to you.
If you’re expecting a Bacs payment and receive an advice slip but the payment doesn’t appear in your account within a reasonable amount of time, you should contact the payer to find out if there are any issues.
Payments services at Interbacs
Interbacs was established by Bacs software experts. With a team boasting more than 30 years of combined industry experience in Bacs and business payment software delivery, we can provide your business with the highest-quality Direct Debit collection and payment solutions. Our friendly, professional and efficient processing team is always on hand to answer your phone calls and provide service and support with a smile.
We offer a winning blend of Bacs approved software, industry expertise and transparent pricing to make your Direct Debit processes as seamless as possible.
If you’d like to find out more about the services and products we offer at Interbacs, please contact us today on 0161 667 0758 or email us at firstname.lastname@example.org.