Key components of a remittance advice note
Remittance emails are not legally required, but they're beneficial for both parties and act as a courtesy to improve record-keeping on both ends. Creating a remittance email takes little time, and you can use a template for every supplier you pay.
In addition, many payment processing and accounting apps for businesses integrate with email provider apps and allow you to automatically generate remittance emails as soon as an invoice is paid.
Most remittance emails mirror the information contained in the invoice, including the pricing amount, sales tax, vendor name and address, payment type, and so forth. Each remittance email you send should include the following components:
Clear subject line and sender information
Since remittance emails are designed to notify your supplier that their invoice has been paid, it's always best to keep it simple. You might include the words "invoice," "payment," and your company name to make it easier to find if they ever need to review the information again.
In some cases, your suppliers may not even open the email, and the subject line is enough to inform them that they've been paid. Then, if there's a problem with the invoice amount, they can refer to the email to help resolve the issue.
Invoice details and payment information
The email design for remittance advice slips doesn't have to be complicated. Instead, it should invoice the same information provided on the invoice and payment information, like when the payment was made and where to.
It can list important information like your supplier's bank account number or the type of payment made. The most important part of this email is the invoice amount, which should be the same as the amount listed on the original invoice.
Thank-you message and appreciation
Remittance emails likely won't make or break your relationship with a supplier, but it does serve as a courtesy they'll appreciate. A quick thank-you message and show of appreciation at the end of your remittance email can go a long way in making suppliers feel like your business values them.
The final piece of information you should share in the remittance email is your contact information and customer support details. Usually, this will be the accounts payable email address or more personal contact information for your accounts payable team members.
If you only have one person managing these accounts and paying invoices, being more personal can go a long way because it will ensure any payment issues are resolved timely.
Since remittance emails are designed to document payment, they're helpful if there are any discrepancies. People make mistakes, so someone may input a wrong number into the accounting system, generating an incorrect payment. When these mistakes happen, it helps to give suppliers contact information to help them resolve the issue.
With this information, they can contact your business headquarters to track down the right person within a specific department, which can be frustrating.
Your suppliers want to be paid correctly and on time, but most are understanding of mistakes. If you don't make it easy to have those mistakes remedied, it can affect your relationship with these other companies.