Key Takeaways:
Remittance advice is a document a payer sends to a supplier confirming that payment has been made, along with details that help the supplier match the payment to the correct invoice.
Malaysian businesses are not legally required to send remittance advice, but it speeds up reconciliation, reduces payment disputes, and supports your audit trail under LHDN rules.
Airwallex Bill Pay lets Malaysian businesses automate remittance advice and pay local and overseas suppliers in one workflow — no manual bank transfers needed.
What is remittance advice? It’s a document a payer sends to a supplier to confirm that a payment has been made and to explain what it covers.
It sounds straightforward, but it solves a real problem.
When you pay multiple invoices in a single bank transfer, the money reaching your supplier's account tells them very little. They don't know which invoice it's for, how much of each you've paid, or what deductions apply. Remittance advice fills that gap.
This guide explains what remittance advice is, what it should include, the types available, and how to send it, with context specific to Malaysia.
What is remittance advice?
Remittance advice is a document confirming that payment has been made. It is also called payment advice or payment notification. The document details which invoices the payment covers, the amount paid, and the payment method used.
The name comes from the term "remit" — meaning to send back. When a supplier sends you an invoice to request payment, you remit the funds back to them. Remittance advice is the notice that accompanies or follows that payment.
It helps to be clear about what remittance advice is not:
It is not proof that payment has cleared your bank.
It is not a receipt.
Funds can still fail to arrive after remittance advice has been sent. For example, the bank details may have been entered incorrectly, or the transfer may be held for compliance review.
Instead, think of remittance advice as a communication tool. It tells your supplier what is coming, what it is for, and when to expect it. For your finance team, it also ties each payment to a specific invoice — useful during month-end reconciliation, year-end audits, and LHDN reviews.
Remittance advice vs invoice vs proof of payment
These three documents all relate to the same transaction, but each one serves a different purpose. Here’s a quick overview:
Document | Purpose | Who sends it | What it includes |
|---|---|---|---|
Invoice | Requests payment for goods or services delivered | Supplier → Buyer | Description of goods or services, amount due, payment terms, due date |
Remittance advice | Confirms payment has been made and specifies what it covers | Buyer → Supplier | Invoice numbers, payment amount, payment method, payment date |
Proof of payment | Confirms that funds have cleared | Bank or payment platform | Transaction reference, cleared amount, date of clearance |
The information in this table has been reviewed to be accurate as of 8 June 2026.
The key distinction: an invoice is a request, remittance advice is a notice, and proof of payment is a confirmation. Remittance advice is sent by the payer; the other two come from the supplier or the bank.
None of them alone tells the full story — but together, they give both parties a clean audit trail.
Do Malaysian businesses have to send remittance advice?
No. There is no law in Malaysia that requires businesses to send remittance advice. It is not mandated by Bank Negara Malaysia, LHDN, or the Companies Commission of Malaysia.
That said, three reasons make it worth doing.
The first is MyInvois reconciliation. When your supplier issues a validated e-invoice through MyInvois, your remittance advice helps them match the payment. Including the invoice number or LHDN Unique Identifier Number (UIN) makes that reconciliation faster.
The second is your audit trail. Malaysian businesses must retain financial records for at least seven years under the Income Tax Act 1967.¹ Remittance advice documents what you paid, what it covered, and when — adding a clear layer to your records.
The third is reducing back-and-forth with overseas suppliers. When you send a telegraphic transfer (TT) to an international vendor, the funds arrive with little context. A brief remittance advice — with the amount, invoice references, and FX rate applied — lets them reconcile without chasing you.
Remittance advice matters most when paying multiple invoices in one transfer, sending large or urgent payments, or settling international invoices.
What should remittance advice include?
The goal is to give your supplier enough information to match the payment to the correct invoice without any back-and-forth. A complete remittance advice typically covers:
Category | What to include |
|---|---|
Payer details | Your company name, address, and a contact for payment queries |
Payee details | The supplier's name and the team or department the payment is addressed to |
Payment details | Date, total amount, payment method (FPX B2B, DuitNow Transfer, IBG, or TT for international payments), and the transaction reference number |
Invoice details | Invoice number, LHDN UIN for any MyInvois-validated e-invoices, amount applied to each invoice, and any discounts or deductions |
Notes | Partial payments, currency conversions, or any other context your supplier needs |
The information in this table has been reviewed to be accurate as of 8 June 2026.
If you’re paying multiple invoices in a single transfer, list each one separately with its own amount and UIN. This prevents your supplier from having to guess how to split the payment across their records.
Want to skip the manual work? Airwallex Bill Pay lets you automate remittance advice to your suppliers. Learn more about Bill Pay or sign up for free.
How to send remittance advice in Malaysia
Sending remittance advice does not need to be complicated. The key is to send it at the right time, include the right details, and keep a copy for your own records.
When to send it
Send remittance advice on the same day you make the payment, or immediately after. Do not wait for the funds to clear. The purpose is to give your supplier advance notice so they can match the incoming payment to the correct invoice as soon as it arrives.
How to send it
Email is the most practical option for most Malaysian businesses. Write the key details in the body of the email or attach a PDF. Address it to your supplier's accounts receivable contact, not a general inbox.
For local transfers, include the transaction reference from your payment:
FPX B2B or DuitNow Transfer: include the transaction reference number generated at the point of payment
IBG (Interbank GIRO): include the bank reference number, as these transfers can take up to two business days to clear
TT (telegraphic transfer): include the SWIFT reference number, the FX rate applied, and the RM equivalent paid so your overseas supplier can reconcile both the foreign currency amount and the local conversion
Keep a copy
Store a copy of every remittance advice against the corresponding invoice in your accounting system. This supports your seven-year record-keeping obligation under the Income Tax Act 1967 and gives you a clean trail if LHDN ever requests documentation.
Why Malaysian businesses choose Airwallex for remittance advice and supplier payments
For most businesses, paying a supplier involves three separate steps: processing the invoice in your accounting software, logging into your bank to make the actual transfer, and sending remittance advice. That last step is the one that most often gets skipped when the finance team is busy.
Looking for a better solution? With Airwallex Bill Pay, you can automate remittance advice so it goes out with the payment — no manual work needed. Here’s what you get with Airwallex:
Automate remittance advice for bill payments
Enable the Remittance Advice toggle in Vendor Management and Airwallex sends your vendors a notification automatically — including the payment amount and invoice reference — every time you process a bill, whether in full or in part.
Pay local and overseas suppliers in one place
Process bills for Malaysian suppliers and overseas suppliers in 200+ countries without switching platforms. 94% of payments are routed through local payment rails, which means faster delivery and no SWIFT fees on those transfers.
Sync payments back to your accounting software
Airwallex connects with Xero, QuickBooks, and NetSuite. Every bill and payment syncs automatically, so your records stay clean and reconciled without manual data entry at month-end.
Frequently asked questions (FAQs)
What is the difference between remittance advice and proof of payment?
Remittance advice is sent by the payer to notify the supplier that payment is on its way and what it covers. Proof of payment is issued by the bank or payment platform after funds have cleared. Remittance advice is a communication; proof of payment is a confirmation.
Is remittance advice legally required in Malaysia?
No. There is no legal requirement under Malaysian law to send remittance advice. However, it supports your seven-year record-keeping obligation under the Income Tax Act 1967 and helps suppliers reconcile payments against MyInvois-validated e-invoices.
What information should I include in remittance advice?
Include your company name, the supplier's name, the payment date, amount, payment method, transaction reference number, and the invoice numbers the payment covers. For MyInvois e-invoices, include the LHDN UIN for each invoice.
What is an outward remittance advice?
An outward remittance advice is issued when you send funds overseas — typically via telegraphic transfer. It confirms the amount sent, the currency, the FX rate applied, and the beneficiary details. Overseas suppliers often request this to reconcile international payments.
Sources:
https://www.hasil.gov.my/media/znonhmuj/20231101-income-tax-act-1967-act-53.pdf
This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Malaysia) Sdn. Bhd., a company incorporated under the laws of Malaysia with company registration number 201801007747 (1269761-X), is regulated as a licensed remittance business under the Money Services Business Act 2011 (Licence number 00743 with an expiry date of 3 August 2028, an E-Money Issuer and a registered merchant acquirer under the Financial Services Act 2013.)
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Cherie Foo
Growth Content Manager
Cherie is a Growth Content Manager at Airwallex, where she develops content for businesses in Singapore and across Southeast Asia. She focuses on turning complex topics like cross-border payments, business accounts, and spend management into clear, practical guides that help founders and finance teams make confident decisions.
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