Two searches, one document: what is a remittance advice, and what is the payment remittance email. It is the paperwork that tells you what a deposit actually was.
What a remittance advice is
When a trader pays you, a bank deposit shows an amount and a reference, and little else. The remittance advice fills the gap. It is a statement, normally emailed, listing what the payment covers.
A good one shows:
- the payment date and the total, matching the bank deposit
- each claim or job, by your reference and the registry ID
- certificates per claim and the rate applied
- GST, where it applies
- adjustments, such as a recall, credit or fee
- the trader’s name, ABN and contact details
Remittance advice versus RCTI
They are not the same, though some traders send one document that serves as both.
| Remittance advice | RCTI | |
|---|---|---|
| Purpose | Explains a payment | Tax invoice for the sale |
| Needed for GST | No | Yes |
| Timing | With or after payment | After settlement |
| Content | Claims, amounts, adjustments | Supply details, GST, total |
For the tax document, see RCTIs for STC sales.
How to use it
- Open the email the day the deposit lands.
- Match the total to the bank deposit.
- Match each line to a claim in your records, checking certificates and rate.
- Match the line to its RCTI.
- Tick the claim off as paid.
If anything does not match, raise it immediately. Differences are easiest to resolve when the claim is fresh.
What the email should look like
A genuine remittance comes from the trader’s usual domain, quotes your legal name and ABN and lists claims you recognise. Be careful of emails that ask you to change bank details or click a link to see a payment. Always change bank details through your account manager, not a reply.
What goes wrong
- Lump-sum deposits covering many claims, with no breakdown.
- Netted adjustments, where a recall is deducted from a new payment without a clear line.
- A different name on the deposit from the one you expected, usually a payment entity.
- Late or missing emails, forcing you to reconcile from the bank alone.
If a trader cannot give you a claim-by-claim breakdown, that is worth noting when you compare traders.
What this means for installers
Treat remittance advice as part of the product. A trader should tell you what was paid, for what, at what rate, without being asked. When a payment does not arrive, the remittance is the first thing to look for. See STC payment not received for what to do next, and how to record payments in Xero or MYOB. You can see how settlement and statements work at how it works and on pricing.