The Confirmation Letter Accounts Receivable is a critical financial document used in Indonesian business operations to verify and document outstanding receivables between companies. It is typically employed during audit periods, financial year-end closings, or when formal verification of debt is required. The document serves multiple purposes: it helps maintain accurate financial records, supports audit requirements, provides legal documentation of debt acknowledgment, and helps resolve any discrepancies in account balances. Under Indonesian law, particularly the Indonesian Financial Accounting Standards (PSAK) and the Indonesian Civil Code, this document carries legal weight and can be used as evidence in commercial disputes. The letter includes specific details such as invoice numbers, dates, amounts, payment terms, and transaction histories, making it an essential tool for financial control and compliance.
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1. Letter Header: Company letterhead, date, reference number, and formal business letter formatting
2. Recipient Details: Full name and address of the debtor company, contact person's name and title
3. Subject Line: Clear indication that this is an Accounts Receivable Confirmation Request
4. Opening Statement: Formal greeting and purpose of the letter
5. Account Details: Statement of the outstanding balance, invoice numbers, and relevant dates
6. Balance Confirmation Request: Formal request for confirmation of the stated balance
7. Response Instructions: Clear instructions on how and when to respond to the confirmation request
8. Closing: Professional closing, signature block with name and title of authorized signatory
1. Payment History Summary: Include when there have been partial payments or payment plans to show transaction history
2. Dispute Resolution Process: Include when there's a history of disputes or when dealing with large amounts
3. Currency Exchange Statement: Include when dealing with international receivables or multiple currencies
4. Electronic Response Option: Include when offering digital confirmation methods
5. Confidentiality Statement: Include when dealing with sensitive commercial information or large corporate debtors
1. Statement of Account: Detailed listing of all relevant invoices, credit notes, and payments
2. Copy of Outstanding Invoices: Copies of all unpaid invoices referenced in the confirmation letter
3. Confirmation Response Form: Standard form for the debtor to confirm or dispute the balance
4. Payment History Report: Detailed transaction history showing all payments received and remaining balance
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Wholesale Trade
Construction
Professional Services
Technology
Healthcare
Telecommunications
Transportation and Logistics
Energy and Utilities
Financial Services
Agriculture
Mining and Resources
Real Estate
Consumer Goods
Industrial Equipment
Relevant Teams
Finance
Accounting
Credit Control
Treasury
Internal Audit
Accounts Receivable
Financial Control
Legal
Corporate Finance
Financial Planning
Collections
Relevant Roles
Chief Financial Officer
Finance Director
Accounts Receivable Manager
Credit Controller
Financial Controller
Accounting Manager
Finance Manager
Accounts Receivable Specialist
Credit Manager
Financial Analyst
Audit Manager
Treasury Manager
Collections Specialist
Book Keeper
Finance Officer
Internal Auditor
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