EDIFACT message guide · Finance

REMADV Remittance advice

The UN/EDIFACT message that gives a detailed accounting of what a payment or other settlement covers.

Sent by
Buyer (payer) or its bank
Received by
Seller (payee)
Standard
UN/EDIFACT · Batch message
X12 equivalent
820 Payment Order/Remittance Advice

What is the EDIFACT REMADV message?

REMADV is the UN/EDIFACT remittance advice message. The directory describes it as a communication between trading partners, such as a seller, a buyer or financial institutions, that provides a detailed accounting relative to a payment or other form of financial settlement for the goods or services detailed in the advice.

Sellers use the remittance advice to apply incoming cash to the right invoices. It lists each invoice or credit note settled, the amount paid against each, and any deductions with reasons, which is what accounts receivable needs to clear open items without manual research.

How the EDIFACT REMADV message worksDiagram of the UN/EDIFACT REMADV Remittance advice message. Buyer (payer) or its bank sends it to seller (payee). It usually follows INVOIC. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: BGM (Beginning of message) and DTM (Date/time/period) and body and segment groups: UNS (Section control) and MOA (Monetary amount). 4 conditional segment groups are listed by their trigger segment.How the EDIFACT REMADV message worksRemittance advice: who sends it, where it fits and what the directory marks mandatory1 WHERE IT FITSUSUALLY FOLLOWSINVOICInvoiceREMADVSENDERBuyer (payer) or itsbankRECEIVERSeller (payee)CONTRL syntax report back, if agreedUSUALLY FOLLOWED BYNo business reply expected2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDsUNB … UNZMessage REMADVUNH … UNTSTART OF MESSAGEBGMBeginning of messageDTMDate/time/periodBODY AND SEGMENT GROUPSUNSSection controlMOAMonetary amount+ 4 conditional groups, starting with:NADCUXDOCALCBlue box: mandatory segment group. Conditional groups are listed by the trigger segment that starts them; a group is sent only when its data applies.Conditional segments outside groups are not drawn.Structure: mandatory segments and groups in the UN/EDIFACT directory D.21A listing for REMADV. Your trading partner's implementation guide adds itsown requirements.
How the EDIFACT REMADV message worksDiagram of the UN/EDIFACT REMADV Remittance advice message. Buyer (payer) or its bank sends it to seller (payee). It usually follows INVOIC. Inside the UNB and UNH envelopes, the directory D.21A requires, in the start of message: BGM (Beginning of message) and DTM (Date/time/period) and body and segment groups: UNS (Section control) and MOA (Monetary amount). 4 conditional segment groups are listed by their trigger segment.How the EDIFACT REMADVmessage worksRemittance advice: who sends it, where it fitsand what the directory marks mandatory1 WHERE IT FITSUSUALLY FOLLOWSINVOICInvoiceREMADVSENDERBuyer (payer) orits bankRECEIVERSeller (payee)CONTRL syntax report back, if agreedUSUALLY FOLLOWED BYNo business reply expected2 WHAT DIRECTORY D.21A REQUIRESInterchange: sender and recipient IDs(UNB … UNZ)Message REMADV (UNH … UNT)START OF MESSAGEBGMBeginning of messageDTMDate/time/periodBODY AND SEGMENT GROUPSUNSSection controlMOAMonetary amount+ 4 conditional groups, starting with:NADCUXDOCALCBlue box: mandatory segment group. Conditionalgroups are listed by the trigger segment thatstarts them; a group is sent only when its dataapplies. Conditional segments outside groups arenot drawn.Structure: mandatory segments and groups in theUN/EDIFACT directory D.21A listing for REMADV.Your trading partner's implementation guide adds itsown requirements.

How to read this diagram: the top row shows who sends REMADV, to whom, and which messages usually come before and after it. The lower part shows what the directory D.21A itself requires: the envelopes around REMADV and the segments and segment groups it marks mandatory. Conditional groups are listed by their trigger segment rather than drawn in full. This is the directory's minimum, not a trading partner's requirement: a message implementation guide, such as an industry subset or a partner’s own guide, usually makes some conditional groups mandatory, restricts the codes and may use an older directory.

Expand diagram Download SVG

When it is used

  • Explaining which invoices a payment covers
  • Reporting deductions and adjustments taken
  • Announcing a payment before funds arrive

Where it fits in the message flow

Usually follows INVOIC Invoice
This message REMADV Remittance advice

Structure

Mandatory segments in REMADV (directory D.21A)

In UN/EDIFACT directory D.21A, the REMADV message has 48 segment positions arranged in 14 segment groups. These are the segments and segment groups marked mandatory at message level, in order; a mandatory group is shown with the segment that starts it. Segments inside conditional groups are needed only when the group is used. This is the directory’s requirement, not your trading partner’s: each partner’s message implementation guide names the directory it uses, often an older one such as D.96A or D.01B where the structure can differ, makes some conditional segments mandatory and restricts the codes.

  • UNH
  • BGM
  • DTM
  • UNS
  • MOA
  • UNT

Practical example

REMADV in practice

A car parts distributor pays a supplier for 85 invoices in one bank transfer. Its payables system sends the supplier a REMADV listing each invoice, the amount paid, two credit notes offset and a deduction for a pricing difference. The supplier's cash application process matches the transfer to the advice and clears the invoices automatically.

Implementation

Implementation considerations for REMADV

  • Reference invoice numbers exactly as the seller issued them.
  • Give reasons for deductions so they can be investigated.
  • Match the remittance total to the actual payment amount.
  • Agree whether the advice travels directly or through the banks.

Need help with REMADV?

ECOM maps, tests and monitors EDIFACT messages for your trading partners and integrates them with your ERP.