REMADV: the EDI message that lets you know when you're being paid
A common business-to-business communications flow involves several common documents such as order forms despatch advices or invoices. All these messages have their equivalent in the world of EDI, where companies can exchange information electronically, improving processes between businesses and making them more efficient. The facilities provided by this communication system means that communication between companies is instantaneous and secure.
As the rollout of EDI increases, so does the use that companies make of the features provided by this technology. They are no longer limited to setting up basic communication flows and can now take advantage of other messages with a positive impact on the supply chain. For example, the settlement advice message or REMADV.
What is REMADV?
The remittance advice message (REMADV) or liquidation note is an EDI document that a company issues to its supplier as notice of when and how much they are to pay for the service provided or commodity exchanged.
In EDIFACT language it is known as REMADV, but in the X12 language most widely used in the American continent it is designated message 820.
This message is incorporated into the EDI flow to let you know that the payment will be made and, in addition, it lets you include several different billing transactions, but with a single payment date. This way, providers can know exactly when they will receive the money and can better plan and manage their financial situation. In addition, based on the settlement notice, the supplier can issue a Payment Receipt add-on more easily with all the information extracted from the REMADV.
Benefits of using REMADV
- Better information processing: Providing exact information on the payment.
- Safe in the knowledge that the payment will take place, the supplier can make a forecast of collection in advance.
- Fewer errors in payments.
- Improved financial management: There is a predictability that will help achieve better management, which creates an added value when optimizing the entire chain of messages.
Find out about all the EDI solutions that can help make your transactions more agile and efficient by automating the integration of business documents with the ERP.