3 minute read

What is a REMADV Message?

EDI document flows between businesses

Through electronic data interchange between companies, structured documents are exchanged between buyers and sellers. These documents are created by ERP systems, and are sent and received automatically.

Businesses such as retail, will exchange different documents between their ERP systems:

  1. PRICAT: The supplier sends his customer price catalogue data, which he can then save in his ERP system
  2. ORDERS: The customer sends an order to the supplier
  3. ORDCHG: The customer changes the placed order
  4. ORDRSP: The supplier confirms whether he accepts the order or not
  5. DESADV: The supplier sends a despatch advice to the customer, which contains details about the delivery
  6. RECADV: The customer confirms the supplier the amount of received goods
  7. INVOIC: The supplier invoices the delivered goods to the customer

These document types are not necessarily used in every business scenario, and the type and use differ from branch to branch. The last possible document type that can be sent is a REMADV, which we will have a closer look at below.

Webinar - Moving from a Local Converter to Fully Managed EDI
Learn how fully managed EDI could help to boost your business

REMADV message in the EDI document flow

REMADV (Remittance Advice) is an EDI document, which a company will send to their supplier in order to inform them when and how much they will pay them for the received goods or services.

This allows suppliers to know when exactly they will receive which payment, thus allowing them to better plan and control their financial situation.

In EDIFACT, this document type is REMADV, in ANSI X12 it is an 820 message. The document flow described above would therefore look as follows with an REMADV:

EDI document flow for procurement with REMADV
EDI document flow for procurement with REMADV

A remittance advice messages contains various data in regard to the payment of goods. This includes for example the invoice number and amount, surcharge or reduction reasons and amount (e.g., discount), any amount that has already been transferred or is still due, etc. The remittance advice can furthermore refer to different business processes and the corresponding financial transactions.

Here is an example of how a REMADV document can look like in EDIFACT EANCOM D01B format:

UNA:+.? '
FII+RB+GB32100600003200765324:John Doe Ltd.+SPAODEGFXXX::17'
COM+0044 89 477 23 23:TE'
COM+0044 89 477 28 99:FX'
COM+0044 89 477 23 28:TE'

How are businesses benefitting from using REMADV documents?

The information from the REMADV message is automatically imported in the ERP system, which prevents manual interventions. This allows a business to save on internal resources and to reduce the rate of processing errors. It also makes it easier to compare the actual with the target status, so the business can respond accordingly.

A REMADV allows businesses to plan their finances more precisely and in a more reliable way, since their ERP system already has the information about the payments of the invoices before they have reached their accounts. This gives a business the opportunity to create important reports and forecasts, which are needed for the financial planning before the amounts have been paid.

To Sum Up

REMADV is currently hardly used compared to other document types in the EDI world. However, once it has been set up, the advantages are countless. A REMADV is not only helpful when planning your finances, but it also allows you to recognise payment errors early and automatically. Especially large enterprises work with this document type and request its implementation more and more from their business partners.

Do you have any questions?

Do you still have questions about REMADV or about electronic data interchange with an ERP system? Feel free to contact us, we would love to help you!

most read

Keep on reading

6 minute read

Expert Perspective — Christoph Ebm: EDI Post-Covid

In this insightful interview, ecosio CEO Christoph Ebm shares his thoughts on supply chain resilience and what the future holds for EDI.

7 minute read

Choosing an EDI Platform - A Breakdown

Looking for advice and information on EDI platforms and what what to look for when deciding between the various options? Look no further!

7 minute read

A Guide to Efficient EDI Systems

In this article we break down what an EDI system is, what different types of system offer, and things to remember when selecting a solution.

9 minute read

EDI Integration: What is It and How Can It Help Your Business?

Efficient EDI integration can have a transformative effect on your business. Read our article to find out how it can benefit you.

4 minute read

The Most Common ANSI ASC X12 Party Identifiers and How to Use Them

ANSI X12 party identifiers are a common source of errors. In this article we explore how to avoid issues and what the most common X12 party identifiers are.

9 minute read

Using EDIFACT Parties Correctly - A Breakdown

Errors involving EDIFACT party codes (or EDIFACT parties) are a key cause of master data issues. Find out why.

8 minute read

What is Master Data Synchronisation and Why is it Needed?

Find out how conducting a master data synchronisation can make everyday EDI exchanges and partner onboarding easier and more efficient.

4 minute read

A Brief Introduction to Modern EDI Systems

Are you aware of what modern EDI systems can offer? In this article we explore the recent trend towards fully managed solutions.

5 minute read

The Three Most Common EDI Pitfalls

While EDI can offer substantial benefits, achieving the perfect solution isn't always easy. Read our article to find out where many go wrong.

4 minute read

The Five Top EDI Trends: Expert Forecast

In this article we explore five current EDI trends and the extent to which they reflect the future of EDI more widely.

10 minute read

Full Service EDI Explained

What is full service EDI (AKA fully managed EDI), what benefits can it offer your business and is it really the future of B2B integration?

5 minute read

How Easy is Handling EDI In-house?

Handling EDI in-house may seem like a simple solution, but do you know what setting up and running an EDI system really entails?

We use cookies to provide an optimal website experience. You decide which one you want to allow. Depending on the setting, however, not all functionalities may be available to you. Data protection & Imprint.