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Also known as a consignment note or transit letter, a consignment note is a document that accompanies a payment. The purpose of the letter is to refer to the reason for the payment or shipment, as well as to provide other information that will help the creditor correctly record receipt of payment. While the exact content of the letter will vary depending on the nature of the business agreement and local customs, there are some basic details that are considered essential to a well-written transit letter.
Virtually any type of cover letter will include three basic pieces of information. The letter will identify the sender, usually including the debtor’s name and mailing address. Along with the sender’s contact information, the lender’s name and address are also mentioned. Finally, the attached payment amount is also included in the body of the letter.
Other types of information can also be included in the delivery letter text. In many areas, it is considered appropriate to include the debtor’s account number, 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 the customer purchased or a note of the due date on the invoice.
The general format of a cover letter is short and to the point. The letter often 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 details that help the recipient make 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 will usually appear after the signature, at the end 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business situations, such as when a bank sends a check to another bank, this form of correspondence has largely been superseded by what is known as a remittance ticket. Ticket is simply a perforated section of an invoice that can be detached and returned with payment. Information such as account numbers and due dates are pre-printed on the receipt, so there is no need for the sender to reference this information. There is usually space on the receipt for the sender to write information such as the check number or date paid.