Free Remittance Advice Generator

What a remittance advice is and why 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 in Australia, but it is standard practice, particularly in industries where suppliers manage large numbers of accounts receivable.

Without a remittance advice, suppliers receive a bank transfer with no context and must manually match the payment to open invoices. This leads to queries, follow-up emails, and reconciliation delays. A remittance advice eliminates that friction by providing invoice numbers, amounts paid, any discounts applied, and the net payment total.

Worked example: weekly payment run, 6 invoices to one supplier

A wholesale distributor runs a weekly payment cycle. This week's batch to a packaging supplier includes 6 invoices, one with an early payment discount:

INV-4901 qualifies for a 2% early payment discount (2/10 net 30 terms, paid within 10 days). The remittance shows the original amount, the discount taken, and the net paid. Without this breakdown, the supplier sees a transfer of AU$18,163.40 against AU$18,280.00 in open invoices and has to figure out where the AU$116.60 difference went. With the remittance, they can allocate and close all 6 invoices in minutes.

Why remittance advices reduce AP workload

The benefit is not just to the supplier. From an AP perspective, sending remittance advices protects the buyer. It creates a paper trail showing which invoices were intended to be settled, making it straightforward to resolve disputes about outstanding balances or duplicate payments. When a supplier claims an invoice is still open, the remittance advice is the first document your team reaches for.

Businesses that do not send remittance advices typically spend 2-5 hours per week fielding "where's my payment?" queries from suppliers. Each query requires the AP officer to look up the payment, identify which invoices were included, and respond. A remittance advice sent at the time of payment prevents the query from happening in the first place.

How to use this remittance advice generator

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

Frequently asked questions

Is a remittance advice required by law in Australia?

No. There is no legal obligation. However, many supplier contracts include a requirement to send one within a set timeframe of payment. Even without a contractual requirement, sending remittances is professional practice and reduces supplier reconciliation queries.

What if I am paying multiple invoices in one transfer?

That is exactly when a remittance is most valuable. List each invoice on a separate line. The supplier allocates each component to the correct invoice without contacting you to ask how the lump sum should be applied.

Can I include early payment discounts?

Yes. Show the original invoice amount, the discount taken, and the net amount paid for each line. This prevents disputes about the discount and gives the supplier documentation to record the adjustment in their accounts receivable.