A remittance letter is a documentation accompanying payments, checks or drafts submitted for collection, listing the number of checks (items) being sent and the total dollar amount of the checks. The purpose of the letter is to reference the reason for the payment or remittance, as well as supply other information that will assist the creditor in recording the receipt of the payment properly. While the exact contents of the letter will vary depending on the nature of the business arrangement and local custom. A remittance letter is used when the sending bank does not have an account at the receiving bank. There are a few basic details d etails that are considered essential for a well-written transit letter. A kind of remittance letter will include three basic pieces of information: (1)The letter will identify the sender, often by including the name and mailing address of the debtor. (2)The sender’s contact information, the name and address of the creditor is also referenced.
(3)The amount of the enclosed payment is also included in the body of the letter. Other types of information may also be included in the text of the remittance letter. In many areas, including the account number of the debtor is considered proper, along with a reference to any invoice number to which the payment should be applied. There may also be a reference to the goods or services that were purchased by the customer, or a notation of the date when the invoice is due. The entire format for a remittance letter is kept short, brief and to the point. The remittance letter starts with the date of the correspondence and it is followed by the recipient name and mailing address. It should have a simple salutation where the sender can mentioned the details including reason for the payment, and any other data in one or two paragraphs. The information contained in the letter should assist the receiver in applying for the payment effortlessly. In the end of the letter, the standard closing along with the signature of the sender should be followed.
While a remittance letter is still often used in formal business situations, such as when one bank is forwarded a check to another bank, this form of correspondence has largely been replaced by what is known as the remittance slip. The slip is simply a perforated section of an invoice that can be detached and returned with the payment. Data such as account numbers and due dates are pre-printed on the slip, making it unnecessary for the sender to reference that information. There is usually room on the slip for the sender to write in information like the check number or the date of the payment Remittance letters are often used when the customer does not have a fully established account with the counter party.
Letter of the transmittal or Cover letter A cover letter or a letter of transmittal accompanies an item or document sent to a client and identify what is being sent. A letter of transmittal introduces a document such as a report to the reader, typically with less formality than the report itself. As the writer, you have the opportunity to
remind the reader of highlights of interest present sensitive or confidential information related to, but not part of, the report.
Although it accompanies a report, it is separate from the document; therefore, do not include it in the report table of contents and do not bind it with the report. Place it on top of the report instead. A letter of transmittal typically includes the following: 1. 2. 3. 4.
name and address of recipient of report in the inside address information about what is being sent follow-up action expected of the reader offer of continued communication or clarification The main parts of a transmittal letter: Heading (Your Address) Date Recipient Address Salutation Body (which includes 4 sub-parts) 1. Reason for the letter 2. Statement of facts 3. Request or follow-up 4. Contact information Conclusion Notations
Street Address City, State ZIP Month Date, Year
Name of recipient Title Company Street Address City, State ZIP Dear Dr. Name: Why was the report written? When was it assigned? What is its title and additional identifying information? What is the scope of the report? Its purpose? Limitations? What are your conclusions? Recommendations? (The letter of transmittal is the appropriate place to discuss matters of concern that need to be raised but not circulated with the report.)
What action or input is requested? Sincerely,
Your Signature
Your typed name Your title
ACME Corporation 123 Broad Street Seattle, WA 87778 September 22, 2010 Rahul Bagrawani Project Manager Starcast Software 1167 Montezuma Drive Arlington, VA 23312 Dear Mr. Bagrawani, As ACME Corporation we are pleased submit for your consideration the enclosed proposal in response to your RFP #234-RT to upgrade your client-server architecture. Our proposal offers the latest technology to upgrade your legacy systems with ample room to accommodate any cloud-computing applications as well. We look forward to hearing from you and answering any questions that you might have. Please feel free to contact me at (934) 555-1234 ext. 55 or by email at
[email protected] Sincerely. [Your signature] Johannesen Williams Vice President, Marketing
