Definition of Remittance letter:
A remittance letter is a document sent by a customer, which is often a financial institution or another type of firm, to a creditor or supplier along with payment to briefly explain what the payment is for so that the customer's account will be credited properly.
A remittance letter can also be referred to as a remittance copy of the invoice since it typically contains much of the same information as an invoice, such as the customer's account number and invoice number. Remittance letters may also be used when the customer does not have a fully established account with the company or supplier.
A letter enclosed with a payment to ensure that the payment is credited properly. Businesses use remittance letters when they do not have an established relationship with a supplier, and they are concerned that the supplier may not know the reason for the payment.
How to use Remittance letter in a sentence?
- A remittance letter is typically sent by a customer to a supplier to inform them of a payment being made.
- Remittance letters serve as notification that an invoice and balance has been paid.
- Remittance letters may contain the date, customer's name, address and account number, the invoice number and amount due as well as due date.
Meaning of Remittance letter & Remittance letter Definition