A remittance is a payment a buyer sends to a seller to settle an invoice or clear an outstanding account balance. More broadly, the term describes any transfer of funds made to satisfy a financial obligation. In B2B commerce it usually shows up in two forms: the money itself, and the paperwork (a remittance advice) that tells the seller which invoices the payment covers.
How it works
A seller issues an invoice with an amount, due date, and payment terms. The buyer then remits payment through a bank transfer, ACH, card, check, or an online checkout. On larger accounts, buyers often pay several invoices at once, so they attach a remittance advice listing each invoice number and amount. That document lets the seller’s accounts receivable team match incoming funds to the right invoices, a step called cash application.
Why it matters
Clean remittance is the difference between a paid order and a reconciliation headache. When a payment arrives without clear reference to what it covers, someone has to chase the buyer to allocate it. For B2B sellers running many open invoices, slow or ambiguous remittance ties up cash flow and inflates days sales outstanding.
In B2B quoting on Shopify
Traditional B2B often ends a quote with an invoice and a separate remittance step handled outside the store. On Shopify, an accepted quote can convert into a draft order the buyer pays through native checkout, so the remittance happens inside Shopify and the payment is already tied to the order. That removes the manual matching for card and digital payments. Buyers who still pay on terms by bank transfer will send a remittance advice as usual, which you reconcile against the order. See the B2B quoting glossary for related terms like net terms and draft order.