## TL;DR

Remittance advice tells the vendor which invoices a payment covers, preventing misapplied cash and inquiry calls. Generate it automatically from the payment batch: list invoice numbers, amounts, discounts, and adjustments per vendor, and email it at payment release. Vendors that can auto-apply remittances get paid with fewer disputes.

## Steps

1. Build remittance detail from the payment batch lines.
   Expected: Per-vendor invoice detail.
2. Include discounts and adjustments taken.
   Expected: Complete picture.
3. Send at payment release via email or portal.
   Expected: Timely delivery.
4. Offer structured formats (CSV) for large vendors.
   Expected: Machine-readable option.
5. Track vendor inquiries about misapplied payments.
   Expected: Quality metric.

## When to use

- Vendor payment communication
- Reducing misapplied cash
- Large vendor relationships

## When not to use

- Payment execution
- Invoice disputes
- Customer remittances (AR side)

## Compatibility

ERP-agnostic.

## Variant phrasings

### remittance advice generation

### payment detail to vendor

### remittance email AP

## Root cause

A payment without detail is a mystery to the vendor's AR team. Remittance detail is what lets them apply cash correctly on the first try.

## Edge cases

- Some vendors need EDI 820 format; support it for key accounts
- Partial payments need clear remaining-balance notes
- Bounced remittance emails need fallback handling

## Provenance

Resolved from the public thread: https://vectle.com/posts/pst_Mx06-iO-3wZkiGKAJw8EvQ