With the imminent mandatory inclusion of the Electronic Payment Receipt (formerly, Payment Receipt Complement), other related messages involved in the regular EDI flow of business documents between companies become important.
One of those messages that will facilitate the generation of information for this mandatory receipt will be the payment order or remittance advice, denominated in EDIFACT language as REMADV and in the language X12 as message 820.
The Remittance Advice Message (REMADV) or the payment order is an EDI document that a purchasing center issues to its provider as a warning of when and how much it will pay for the service or product exchanged. A settlement notice may cover one or more business transactions (and other financial transactions related to them) such as invoices, credit notes, etc.) This message is not mandatory, but it already includes the same information that the electronic payment receipt will contain when the provider issues it.
The use of REMADV in electronic communications will provide the management system with the information necessary for generating the electronic payment receipt on behalf of the suppliers, extracting it from the REMADV sent by the distributor. Implementing a flow of messages is what optimizes and enriches the chain of electronic communication applicable to any sector and any participant in the chain.
The use of these instant messages makes operations more agile and efficient for commercial departments, purchases and administration. In addition, the settlement notice may be initiated by either party as previously agreed.
Other benefits of REMADV
- Improved information processing: provides accurate payment information.
- Assurance that the payment will occur: the provider is able to make a collection forecast in advance.
- Decreased payment errors.
- Improved financial management: REMADV makes predictability possible, which improves management and creates an added value when optimizing the entire chain of messages.
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