Accounts Payable

What is a letter of remitance?

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Wiki User
06/27/2014

By definition, a letter of remittance is "a document sent by a customer, which is often a financial institution or other type of firm, to a creditor or supplier along with a payment to briefly explain what the payment is for so that the customer's account will be credited properly." These letters are usually used when the customer does not have an established account with the other entity.