Remittance Advice Letter

The customer sends a letter to the supplier to let him know that the payment has been made against the invoice that he 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 clearer, the customer must provide the details of the shipment payment of which, 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 with the letter. This letter is a comprehensive description of the invoice that the seller issues to his valued customers. The purpose of writing this letter is just to show some courtesy and make things easy. 

Who sends the remittance advice letter?

In the business world, people should know who should be writing this letter and when. Generally, all those vendors or sellers who issue the invoice against the products and services they sell wait for the amount to be paid against that invoice. The purpose of them to send the invoice is to make a formal request to their clients to pay the billing amount mentioned in the invoice. 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 important 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 inform the seller verbally or they don’t inform at all and assume that the seller will come to know about it. Likewise, some sellers also don’t ask their customers to send them 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 the letter is read and interpreted. The purpose of interpretation is to ensure that the buyer has paid the exact amount that was 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 on which the buyer pays against the bill is important to mention 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 lots of customers at a time. Therefore, he must know the name of the customer who has made the payment and written this letter.

Address and account number of the customer:

Some other important details of the buyer should also be put in the remittance copy of the invoice letter. These details include the complete address of the customer, a unique account number of the customer, and much more.

Order details:

The order number payment of which has been made, shipment number and some pertinent details can be provided in this letter.

Amount paid:

The customer should tell the due amount that he has paid. To be more comprehensive, he can also mention the due date of paying that amount.

Sample remittance advice letter:

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

Address: _________________

Dear Mr. ABC,

This letter is being written to let you know that I have made the payment of 1000$ on 10th Oct 20XX against the invoice (mention the invoice number) with a due date of 15th Oct 20XX. The payment of shoes purchased from you has been cleared with the help of a check. Please find the copy of that check enclosed with this letter.

In case you have any questions regarding the information provided above, don’t hesitate to contact me on [X]. Please deposit the check and let me know if any problem occurs. It was an enjoyable experience shopping for shoes from you.


Name of the buyer


Remittance Advice Letter

File: Word (.docx) 2007+ and iPad
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