Remittance letters are documents that accompany payments, such as drafts and checks, which are submitted to satisfy collections. Remittance letters contain several key pieces of information, identifying the: sender and his/her contact information: exact amount paid; payment terms like " due on receipt" or " 30-day net": any codes and account numbers that relate to the enclosed payment; and name
. and address of the person or entity to whom a letter is addressed.During the normal course of business, letters of remittance can take several forms. For revolving and installment accounts of individuals, payment stubs and perforated tear-off portions of invoices serve as the remittance letter. Individuals fill in the amount of the enclosed payment on the voucher and submit it to the collector. On occasion, special circumstances like late payments warrant additional explanations in a separate customized remittance letter that accompanies the payment voucher.Often, when businesses have not established a relationship with a supplier, the accounts payable departments submit remittance letters with their bank drafts to ensure that payments are credited correctly. A bank uses remittance slips or cash letters as a form of customized remittance letters to accompany checks that are forwarded to other banks. The account numbers, check numbers, dates and other data are pre-printed on the slips for referencing attached checks.Professional business writers format remittance letters that are short and straightforward, with a company letterhead or personal address, date and recipient's/creditor's name, phone number and email. A simple salutation and reference data, such as account and invoice numbers, payment amounts and type of goods/service, are described in a " Re:" section. Some or all of the details are repeated in the body of the letter, usually a few sentences in one or two paragraphs. The purpose of the payment and any additional information are explained to distinguish the remittance for proper payment. The signature of the person/debtor sending the check, draft or money order follows standard closing remarks. Typically, senders of remittance letters retain copies of the letters for their records.Sample remittance letters and other resources are available online.More reference links: http://www.rodentsoftware.com/letters/ http://www.letters-home.com/search/remittance-letter/
