Remittance advice

Remittance advice – in the area of Commercial Law, this term refers to an official and valid confirmation by the buyer, that he has paid the price of a good or service towards the manufacturer or towards the seller (depending of the case). The role of the remittance advice is to make the accountancy of the manufacturer/seller much easier and to allow easier receipt of money by the buyer on a later stage (in court for example) if needed. For the purpose of such a confirmation, the manufacturer, to which the price has been paid, is called “remittee”. On the other side, the buyer who makes the payment is called “remitter”. The origin of this term is the word “remittance” which literally means “keep”, “maintenance”.

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