Remittance Slip

What is a remittance slip?

A remittance slip is a document sent with a payment to provide details about the transaction. It tells the recipient—usually a business or vendor—what the payment is for, who it’s from, and which invoice(s) or account(s) to apply it to. While not always required, remittance slips help ensure payments are processed correctly and credited to the right place. This can be especially helpful in B2B transactions or when multiple invoices are involved.

Key Points

A remittance slip is a document sent with a payment to explain what the payment is for. The document helps businesses correctly apply funds to the right invoices or accounts.
It reduces confusion and speeds up reconciliation.
A remittance slip is often a detachable portion of an invoice or bill that the customer sends back with the payment as a form of remittance advice.

Remittance slip example

Let’s say a customer is paying a company for three different invoices. Along with the check or bank transfer, they might include a remittance slip that includes:

Invoice #1023 – $500
Invoice #1025 – $300
Invoice #1026 – $200

After reading this over, the business knows exactly how to apply the $1,000 payment. It reduces confusion, delays, and can speed up account reconciliation.

How to create a remittance slip

Creating a remittance slip is simple. You can use a spreadsheet, word processor, or accounting software. A basic remittance slip should include:

Payer’s name and contact info
Recipient’s company name
Date of payment
Payment method (check, ACH, wire, etc.)
Invoice numbers and corresponding payment amounts
Total amount paid

Many companies add remittance slips to the bottom of an invoice so customers can tear it off and return it with their payment. This helps reduce confusion and ensures the payment is applied correctly. A remittance slip is a smart option to include if you receive payments by mail or want to increase your AR efficiency.