The collection order is a settlement document that facilitates the repayment of certain obligations to the bank

The collection order is a settlement document, withwhich helps to write off a certain amount of money in an indisputable order from the payer's accounts. In other words, settlements for collection represent a kind of banking operation that facilitates the receipt by the banking institution on behalf of the client on the basis of certain settlement documents due funds on behalf of the payer. In this case, it is a question of paying for goods and services received by such a payer when they are credited to his bank account. Collection can be defined as an order of the creditor (seller) to its banking institution to receive from the payer (buyer) directly or through another bank a certain amount of money or a confirmation of the payment of this amount on time.

Areas of using collection orders

collection order is
Collection orders are used:

- with the recovery of funds in an indisputable order established by the relevant legislation;

- when collecting debts to the budget by controlling bodies;

- in the recovery of documents of an executive nature;

- within the framework of the main contract provided forparties, subject to granting the banking institution responsible for servicing the payer the right to write-off his funds without his order.

The main types of collection documents

collection of collection orders
The collection order is a document presented by the payer for certain settlements. In the specialized literature the following types of these papers are displayed:

- clean collection, to which must be enclosed a check or bill;

- Documentary collection is represented by an act on acceptance of work or an invoice for goods.

With the receipt of the client's request, the banking institution accepts the appropriate collection instruction. This is exactly the payment requirement that is applied to the customer's account (payer).

collection orders are applied
This banking transaction is carried out incombination with the acceptance of such a calculation. This form assumes immediate shipment of goods within the framework of the current contract, regardless of whether the buyer has paid for it or not. The latter pays the cost of the product upon receipt of the whole package of settlement documents with the preliminary verification by the seller of its quantity, price and quality in accordance with the terms of the contract.

Filling of the collection order

There is a special form for filling incollection order. So, in case of indisputable collection of funds within the framework of the legislation, it is necessary to specify a reference to the relevant law as the purpose of payment.

When recovering from executive documents, there arealso some features in the filling, which are entered in the collection order. This is a reference to the date of such an executive document with a mandatory indication of its number, the case where the decision on enforcement was made.