A bill of lading is a document attached to a payment that references the reason for the payment and provides essential information. It includes the sender and creditor’s contact information and payment amount, and other details like account numbers and invoice numbers may be included. Remittance receipts have largely replaced remittance letters in formal business situations.
Also known as a bill of lading or letter of transit, a bill of lading is a document that is attached to a payment. The purpose of the letter is to reference the reason for the payment or remittance, as well as provide other information that will help the creditor to record the receipt of the payment correctly. While the exact content of the letter will vary depending on the nature of the trade agreement and local custom, there are some basic details that are considered essential to a well-written letter of transit.
Almost any type of shipping letter will include three basic pieces of information. The letter will identify the sender, often including the debtor’s name and mailing address. Along with the sender’s contact information, the creditor’s name and address are also referenced. Finally, the attached payment amount is also included in the body of the letter.
Other types of information can also be included in the text of the shipping letter. In many areas, including the debtor’s account number is considered appropriate, along with a reference to any invoice number to which the payment is to be applied. There may also be a reference to the goods or services that were purchased by the customer, or a notation of the due date of the invoice.
The general format for a cover letter is short and to the point. Often the letter begins with the date of the correspondence, followed by the recipient’s name and mailing address. Through a simple greeting, the sender details in one or two paragraphs the reason for the payment and any information that helps the recipient to apply the payment correctly. A standard closing follows, accompanied by the sender’s signature. If the sender’s mailing address is included in the letter, it usually appears after the signature, at the bottom of the document.
While a remittance letter is still often used in formal business situations, such as when a bank sends a check to another bank, this form of correspondence has largely been superseded by what is known as the remittance receipt. The receipt is simply a perforated section of a bill that can be detached and returned with payment. Data such as account numbers and expiration dates are pre-printed on the receipt, making it unnecessary for the sender to reference that information. There is usually space on the receipt for the sender to write information such as the check number or the date of payment
Smart Asset.
Protect your devices with Threat Protection by NordVPN
