Final answer:
A remittance advice is a turn-around document that provides detailed information about payments made by a customer to a supplier.
Step-by-step explanation:
A turnaround document, by definition, is a document that originates in one department of an organization, is sent to another department for processing, and is eventually returned to the originating department as output. In the context of business transactions, the remittance advice perfectly aligns with this description.
In the typical business scenario, a remittance advice is generated by a customer who makes a payment to a supplier. This document accompanies the payment and provides detailed information regarding the specific invoices being settled. It includes crucial details such as invoice numbers, corresponding amounts, and any remaining outstanding balances. Once received by the supplier, the remittance advice serves as input for their accounts receivable department.
The accounts receivable department then processes this information, updating their records to reflect the payments received and adjusting outstanding balances accordingly.