NURUL ANGGRAINY S.

NIM : 45216012

CLASS 3A D4 BUSINESS ADMINISTRATION

COLLECTION OF PAYMENT

1. Answer The Following Questions.

a. Why is the collection of letter important for the firm?

b. What do the reasons for the firm usually write the letter of collection?

c. What factors should be considered by the firm in deciding the tone of letter?

d. How many type of letter of collection do you know?

e. What do you have to state for the introduction, body and closing for each type of the letter of
collection of payment?

Answer :
1. Collection of payment letter is important for the firm because there has probably never a
trading firm whose accounts department has not bad to spend a considerable amount of time
in trying to get customers to pay overdue accounts
2. There are several reasons that make an account is not paid when due such as a buyer run into
a period of bad trade, find himself temporarily short of money, he may complaint about the
goods sent or midunderstandings may be caused by customs regulations to his country and
etc.
3. A factors/firm should be very wise to decide types of letter requesting payment in term of
tone or style of the letter. This will really depend on the kind of customer for whom it is
intended, how long overdue, how valuable business is, etc.
4. There are 3 of types of letter requesting the collection of payment.
5. – The first letter:
Introduction : This kind of letter will usually be friendly in tone, be accompanied by a
copy of account or invoice.
Body : Ask to inform that the payment will be overdue or is overdue on the specific
time.
Closing : Ask that we hope the customer can send/meet the payment ontime or on the
specific time we gave, and before we send the second reminding leter.
- The second letter:
Introduction : In this type of letter the writer has to mention about the previous letter sent
and proves that he has not received reply or payment from the customers.
Body : This body letter contain the information to follow up the first
reminding letter and to tell there some compensation if the customer stiil does not pay or
 does not answer you letter at all. We also can give they the deadline time to sent the
payment.
Closing : Ask that we hope the ciustomer can send/meet the payment ontime
as required and before we send the last reminding leter.
- The third letter :
Introduction : Firstly, the writer has to review the situation from the time the
account should have been paid. Secondly, explain that you have been patient. Thirdly, let
the customer know what you intend to do, but do not threaten legal action unless you
intend to take it, as it will make you look weak and indecisi
Body : This body letter contain the information to decide that we will take
legal action and disconnect the relation if the customer still take it seriously.
Closing : Ask that we hope they can send/meet the payment ontime as
required.

2. Write A Letter Based On The Following Situation.

The letter to Panca furnishing has a heading, Office furniture this says what the letter about. It
will remind to the customer about the delay of payment of the invoice No. 82 45317 which is
overdue two months.
Answer :

ROSES OLYMPIC Ltd Co.

Palace Oasis 31 Hill, Canada SE21 AA01
Telephone (081) 866 1861 Fax (081) 866 1385
Our Ref. : Invoice No. 82 45317 4𝑡ℎ November, 2012

Mr. Ferry Juant

Purcashing Manager of Panca Furnishing Co.
Bredgrade 51, DK 1260
Copenhagen K.
DENMARK

Second Reminding Letter of Collection Payment

Referring to our first letter invoice No. 82 45317, reminding you to send delay of payment that
already overdue two months.

We are sorry to remind the second time that if you do not settle the invoice before January 4,
2013, we should ask you for the compensation 25% of the total payment as stated in our business
agreement.

Therefore, we do hope you can pay them before the deadline, so we can keep our good
cooperation..
Finally, we hope you have paid it before this letter arrive, but if you have sent it please disregard
this letter.

Yours sincerely,

Harry Pratama
Purchasing Manager
HP/NA

3. Complete the following letter? There are some missing expressions in the following letters in
each one.

Answer :
Dear Miss Spence

First of Collection Payment of Invoice 322/17

I reference the above invoice for 1, 453.43. (see attached copy) that it is now Two month since
we deiivered the goods.
Unfortunately, we has not received any payment of the invoice untill we wrote this letter.
Therefore, we expect you to have your payment as soon as possible.

Finally, we hope you can paid it before this letter arrive, but if you have paid it before you get
this letter, please disregard this reminding.

Mr. John Fosley

Accountant

JF/NA

4. Write a letter based on the following memo.

You have given a letter of first collection to supervisor at green supermarket Ltd. 13 Stadium Road
Dublin Ireland your manager has just sent you this memo.
ur Manajer Penjualan, Machmud Rachman signs the letter.

Answer :
WOOL WOOD SUPLIES CO.
21 Swanse Road, Swansea, Glamorgan 3ST 1DR
Telephone: 84451 Fax: 86651
𝐽𝑎𝑛𝑢𝑎𝑟𝑦 13, 2013

Mr. Farhan Sanjaya

Supervisor of Green Supermarket Ltd.
13 Stadium Road
Dublin Ireland

Second of Collection Payment of Invoice No. 81 45316

Dear Mr. Sanjaya

Regarding to our first letter on January 4, 2018 reminding you to pay the invoice No. 81 45318
before on January 10, 2018. We are sorry to remind you for the second time and ask when do
you can pay the invoice?.

Therefore, we should ask you for the compensation 25% of the total payment as stated in our
business aggreement.

We do hope you can sent the payment before the deadline, so we can keep our good cooperation.

Yours sincerely,

Ali Akbar
Financial Manager
AA/PS