Acknowledgment for Payment of an Overdue Invoice

When you have to let the customer or client know that you have received the money they have paid, you can write a letter acknowledging the payment. Usually, a representative of a company writes this letter to clients or sends an email.

In business, it is a very common practice to send and receive money. The person sending the money often wants confirmation from the recipient of the money so that he can be sure that the money has been received by the right person. In this situation, the recipient must acknowledge whenever he receives the payment. This builds trust between sender and receiver and makes a suitable environment for future payment transactions.

When to write the acknowledgment?

If you are a seller of a product or service, you will issue an invoice to your customer on which the total amount to be paid by the customer will be mentioned. In case the customer does not pay the full amount and asks for the payment in installments, you will issue another invoice which is known as an overdue invoice. This usually happens when the payment gets late. Whenever the customer pays the amount mentioned on the invoice, you will be notified. In response to it, you will be required to write an acknowledgment letter to him to let him know that the payment he has made has been received and accepted.

How to write the acknowledgment?

While writing this letter, you should keep its purpose in consideration. When you know the real purpose of the letter, you will be in a position to write the letter concisely. Below are a few tips to help you write the acknowledgment for payment you have received in your account:

  1. Since the purpose of this letter is to confirm the reception of the money, you should provide the details including the date on which you received the payment, the total amount you have received, the account number on which you have received it, and much more. With this, the customer will be able to confirm if all the details provided in the letter are correct or not.
  2. Thank the reader for making the payment. Let the reader know that you expect him to clear the payment and you are writing him to confirm.
  3. Remind the reader that he is expected to pay by the deadline. If the deadline is the same every month, mention that in the letter. Also tell the reader that by paying by the deadline, he will be able to get away with penalties added to the due payment due to late payment.
  4. Follow the traditional format of the letter while writing the acknowledgment. Keep it simple and easy to understand.
  5. Don’t forget to add a subject to the letter because it makes the letter more readable.

We are providing you with a sample so that you can get an idea as to how you can draft your letter.

 Sample letter:

Name of the sender:

Sender’s position in the company:


Name of the recipient:

Address and contact details of the recipient

Subject: acknowledgment for payment of an overdue invoice

Dear Sir/Madam,

We have received the payment of 1000$ in account No. 3253254241 that was overdue for the last 5 months through the overdue invoice that our company sent you. We are so thankful to you for the overdue payment. We would like to remind you that customers are required to make the payment by the end of the first week of every month. This will help the customer prevent himself from penalties also.

After having received the payment, we have removed all the restrictions from your account that we imposed because of non-payment from your side. We hope that you will continue clearing all the due payments before their deadline arrives.

We appreciate you and your efforts and we hope that you will not delay payments in future.

To reach us in case you have any query, you can call us at our customer care number or write us back via email or letter. We would love to serve you with better services.

We are looking forward to hearing from you again.

Thank you,

Sender’s name:
Sender’s signatures

Acknowledgment for Payment of an Overdue Invoice

File: Word (.docx) 2007+ and iPad
Size 20 KB