Banking Awareness 12: Methods of remittance.

Are you willing to know the detailed information about the Methods of Remittance? Here is our article which provides you the clean and clear information about the Methods of Remittance. Remittance advice is a letter sent by a customer to a supplier to inform the supplier that their invoice has been paid. If the customer is paying by cheque, the remittance advice often accompanies the cheque. As the cash register tape, the remittance advice serves as a record of cash initially received.

Remittance Service in Banking:- 

Remittance is the funds an expatriate sends to his on her country of origin via wire, mail, or online transfer. These peer-to-peer transfers of funds across borders are economically significant for many of the countries that receive them.

Methods of Remittance: -

It is the method used to determine the accounts to use for the receipts that you can create using the receipt methods assigned to this receipt class.

Standard:- Use the remittance account for automatic receipts which is assigned to a receipt method with this receipt class.

Factoring:- Use the factoring account for automatic receipts assigned to a receipt method with this receipt class.

Standard and Factoring:- Receivables selects receipts assigned to this receipt class for remittance regardless of the batch remittance method. In this case, you can specify either of these remittance methods when creating your remittance batches.

No Remittance:- For Manual receipts only. Remittance is not required for manual receipts assigned to this receipt class.

Clearance Methods for Remittance:- 

The clearance method to require receipts created using a receipt method assigned to this receipt class to be reconciled before posting them to the general ledger cash account.

Directly:- This method is for receipts that you don't expect to be remitted to the bank and subsequently cleared.

It is assumed that these receipts are cleared at the time of receipt entry and require no further processing.

By Automatic Clearing:- Use this method to clear receipts using the Clear Receipts Automatically program.

By Matching:- Use this method to clear receipts manually in Cash Management.

Recently the Technology of the remittance has developed a lot.