Free Remittance Advice Generator

What is a remittance advice and why do suppliers need it?

A remittance advice is a document sent by a buyer to a supplier at the time of payment, listing exactly which invoices have been paid and for how much. It is not a legal requirement, but it is standard practice in Australian business — particularly in industries where suppliers manage large numbers of accounts receivable and need to reconcile payments quickly.

Without a remittance advice, suppliers receive a bank transfer with no context. They must then manually match the payment to open invoices — a time-consuming process that often leads to queries, follow-up emails, and delays. A remittance advice eliminates that friction by giving the supplier exactly the information they need: invoice numbers, amounts paid, any discounts applied, and the net payment total.

From an AP perspective, sending remittance advices also protects the buyer. It creates a clear paper trail showing which invoices were intended to be settled, making it easier to resolve disputes about outstanding balances or duplicate payments. When a supplier claims an invoice is still open, a remittance advice is the first document your team reaches for.

Remittance advices are particularly important in three-way matching environments. Once a PO has been matched to a delivery note and an invoice, and payment is released, the remittance advice closes the loop — confirming to the supplier that the approved invoice has been settled.

How to use this remittance advice generator

1. Enter your business name and the supplier's details. Add the payment date and your payment reference or transaction ID.
2. List each invoice being paid: invoice number, invoice date, original amount, any discount, and the amount paid.
3. Review the total and confirm it matches the bank transfer amount.
4. Download as PDF and email to your supplier immediately after the payment is sent.

Is a remittance advice required by law in Australia?

No, there is no legal obligation to send a remittance advice. However, many supplier contracts and payment terms include a requirement to send one within a set timeframe of payment. Even where it's not contractually required, sending remittances is considered professional practice and significantly reduces supplier reconciliation queries directed at your AP team.

What if I'm paying multiple invoices in one transfer?

That's exactly when a remittance advice is most valuable. List each invoice on a separate line with its number and amount. The supplier can then allocate each component of the payment to the correct invoice in their system — without having to contact you to ask how the lump sum should be applied.

Can I include early payment discounts on a remittance advice?

Yes. If your supplier offers an early payment discount (e.g. 2% if paid within 14 days), show the original invoice amount, the discount taken, and the net amount paid for each line. This transparency prevents disputes about the discount and gives the supplier clear documentation to record the adjustment in their accounts receivable.