Remittance Advice Letter

Remittance Advice Letter

Letters Kate

The customer sent the supplier a letter informing him that the payment had been made against the invoice he had issued. This letter is generally known as a remittance advice letter. This letter tells the supplier that the customer has cleared the payment. To be more apparent, the customer must provide the details of the shipment payment that has been made.

In some cases, the remittance advice letter also includes proof of payment. For instance, if the client has paid the vendor by check, a copy of the check will be attached to the letter. This letter is a comprehensive description of the invoice that the seller issues to his valued customers. This letter aims to show some courtesy and make things easy. 

Who sends the remittance advice letter?

In business, people should know who should write this letter and when. Generally, all vendors or sellers who issue invoices for the products and services they sell wait for the amount to be paid against that invoice. The purpose of sending the invoice is to request their clients pay the billing amount mentioned formally. So, people who are issued the bill have to pay it, and then they are liable to write a letter of money payment.

Why money advice letter is essential to write?

Unfortunately, some sellers and buyers don’t generally consider writing this letter because they feel that it is not important. Buyers make the payment and verbally inform the seller or don’t inform at all and assume that the seller will come to know about it. Likewise, some sellers don’t ask their customers to send proof of payment. This way, things can go wrong.

When a buyer pays the bill issued by the vendor and then writes a money advice letter, he enables the vendor to credit his account. The seller sends this letter to the account-receivable area of his company, where it is read and interpreted. The purpose of interpretation is to ensure that the buyer has paid the exact amount charged to him through the invoice.

What information must be provided by the money copy of the invoice letter?

Most of these letters provide information such as:

Date of payment:

The date the buyer pays against the bill is important in the letter. This lets the seller know whether the buyers paid on time or not.

Name of the customer:

A seller has to deal with many customers at once. Therefore, he must know the name of the customer who made the payment and wrote this letter.

Address and account number of the customer:

The invoice letter’s remittance copy should also include other important details about the buyer, such as the customer’s address and unique account number.

Order details:

This letter can provide the order number for payment, the shipment number, and some pertinent details.

Amount paid:

The customer should tell the due amount that he has paid. He can also mention the due date for paying that amount to be more comprehensive.

Sample remittance advice letter:

Date of writing the letter: [X]
Name of the seller: [X]

Address: _________________

Dear Mr. ABC,

This letter is to inform you that I paid $1000 on 10th Oct 20XX against the invoice (mention the invoice number), due on 15th Oct 20XX. The payment for shoes purchased from you has been cleared with a check. Please find a copy of that check enclosed with this letter.

If you have any questions about the information above, please get in touch with me at [X]. Please deposit the check and let me know if any problems occur. It was an enjoyable experience shopping for shoes from you.

Regards,

Name of the buyer

Signatures

Remittance advice letter

File: Word (.docx) and iPad
Size 22 KB

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