Frequently Asked Questions
Everything you need to know about RemitClear, remittance advice processing, and automated cash application for Xero.
What is remittance advice?
Remittance advice is a document sent by a customer alongside a payment to indicate which invoices the payment covers. It typically includes invoice numbers, amounts, and a total payment figure. Remittance advices are commonly sent as PDF attachments via email. Accounts receivable teams use them to match incoming payments to the correct open invoices, a process known as cash application.
What is remittance advice processing?
Remittance advice processing is the accounts receivable task of receiving remittance documents, extracting invoice details from them, and matching those details against your open invoices to apply payments correctly. Traditionally done manually (involving reading PDFs, cross-referencing invoice numbers in your accounting system, and posting payments one by one) this process can take AR teams hours every day. Automated remittance processing software like RemitClear eliminates this manual work by using AI to extract and match data in seconds.
How does RemitClear automate remittance matching?
RemitClear uses AI-powered OCR to read your remittance advice and extract invoice numbers, amounts, payer details, and payment references. It then matches these against your open accounts receivable invoices in Xero using intelligent matching algorithms, including exact match, partial match, and prefix-based matching. The entire process takes under 10 seconds per remittance, achieving a 99% automatic match rate.
How does RemitClear integrate with Xero?
RemitClear connects to your Xero organisation via secure OAuth2 authentication using Xero's official API. It reads your open AR invoices for matching, then posts payments back to Xero, either as a batch payment (single transaction covering multiple invoices) or as individual payments per invoice. The original remittance document can be automatically attached to each matched invoice in Xero for a complete audit trail. All data stays in sync between RemitClear and Xero in real time.
What file formats does RemitClear support?
RemitClear supports PDFs, Excel files (.xlsx/.xls), and plain email text. PDF remittances are the most common format. Whether they contain structured tables, freeform text, or scanned images, our AI-powered OCR handles them accurately. Excel remittances are also fully supported: structured spreadsheet data is parsed and matched just like a PDF. For remittances sent as plain text in an email body (with no attachment), simply forward the email and RemitClear will extract the invoice details directly from the message text. You can upload files via drag-and-drop, batch upload 20+ at once, or forward emails for automatic processing.
How accurate is the AI matching?
RemitClear achieves a 99% automatic match rate across standard remittance formats. The matching algorithm uses a confidence scoring system based on two factors: amount accuracy (60% weighting) and invoice number match quality (40% weighting). When confidence is lower (for example, if invoice numbers are slightly different between the remittance and Xero) the system flags the match for your review. You always have final approval before any payment is posted.
Can I process multiple remittances at once?
Yes. RemitClear supports batch upload: drag and drop 20 or more remittance files at once and they're all processed in parallel. Each remittance is independently extracted, matched, and queued for your review. This is particularly useful at end-of-month when dozens of remittance advices arrive at once. You can also set up email forwarding for hands-free processing.
What happens if an invoice doesn't match automatically?
When an invoice number from a remittance doesn't match any open invoice in Xero, RemitClear flags it as an exception. You can then use the built-in manual search to find the correct invoice by contact name, invoice number, or amount across your entire Xero organisation. You can also allocate partial amounts, adjust allocations, or mark invoices as already paid, all within the same workflow without switching between systems.
Can I use RemitClear across multiple Xero organisations?
Yes. RemitClear supports multiple Xero organisations from a single workspace. Bookkeeping practices and accounting firms managing several client entities can connect each Xero organisation separately, with its own invoice prefixes, bank account settings, and remittance history. Each organisation's data is kept isolated, so your team processes remittances per client without switching between accounts.
Can I choose between batch payments and individual payments?
Yes. When posting matched invoices to Xero, you can choose to post as a single batch payment (one transaction covering all matched invoices) or as separate individual payments (one payment per invoice). The right choice depends on how the payment appears on your bank statement. If your client sends one lump sum covering multiple invoices, batch payment is usually the best fit. If each invoice is paid separately, individual payments keep your Xero records aligned with your bank feed.
Where is RemitClear available?
RemitClear works with any Xero organisation worldwide. The platform supports multiple currencies and understands common remittance formats across all regions. It's particularly well-suited for industries where clients regularly send multi-invoice remittance advices, such as construction, engineering, professional services, and wholesale distribution.
Does RemitClear work with grocery retail and FMCG remittances?
Yes. RemitClear handles complex grocery retail and FMCG remittance formats including ASDA, Sainsbury's, Tesco, Morrisons, NISA, Costco, and Booker. Multi-page remittances with 200+ line items are processed in under 30 seconds. Grocery and FMCG remittances are among the most time-consuming to process manually due to their volume and complexity. RemitClear handles them automatically, including promotional deduction codes and credit adjustments.
Can RemitClear process NDIA and NDIS remittances?
Yes. NDIA remittances are notoriously complex, often containing hundreds of line items across multiple participants in a single document. RemitClear's AI-powered OCR is designed to extract and match these high-volume remittance advices against your open invoices in Xero. NDIS plan managers and disability service providers use RemitClear to automate what would otherwise be hours of manual reconciliation per remittance.
Is RemitClear secure? How is my Xero data protected?
RemitClear takes security seriously. Your Xero connection uses OAuth2 authentication. RemitClear never stores your Xero password. All data is encrypted in transit and at rest. Uploaded remittance files are stored in secure, isolated storage scoped to your workspace. Optional two-factor authentication adds an extra layer of protection to your account. RemitClear only accesses the Xero data it needs: open invoices, contacts, and payment posting, nothing else.
What is cash application automation?
Cash application is the process of matching incoming payments to open invoices in your accounting system. Cash application automation uses AI and OCR technology to do this automatically: reading remittance advices, extracting payment details, and matching them to your invoices without manual data entry. RemitClear is a cash application automation tool specifically built for Xero, handling the entire workflow from upload to payment posting.
How does email forwarding work?
RemitClear provides a dedicated email address for your workspace. When you forward a remittance advice email to this address, the system processes it automatically, extracting PDF or Excel attachments if present, or reading the remittance details directly from the email body text if no attachment is included. Invoices are matched against Xero and everything is queued for your review. This means your team can process remittances without logging into RemitClear. Just forward and go. It works with any email client.
How do I get started?
Book a demo and we'll walk you through RemitClear using your own remittances. All plans include a 30-day opt-out period, no risk to get started. Setup takes minutes: connect your Xero organisation, configure your invoice prefixes, and start uploading remittances. Most teams are processing their first remittance within 15 minutes of signing up.