Turnaround document definition
/What is a Turnaround Document?
A turnaround document is a computer-generated form that is sent to a third party, who is supposed to fill in the document and return it to the issuer. The information on the form is then used as the basis for data entry back into the computer system.
Turnaround documents are gradually being replaced by online payment and other data collection systems, which allow you to avoid the cost of mailing the document back to the issuer.
Types of Turnaround Documents
There are several types of turnaround documents that are commonly used. They are as follows:
Utility bills. Utility companies send bills to customers with pre-printed information such as account numbers and meter readings. Customers fill in payment details and return part of the bill with their payment for processing.
Payroll time cards. Employers issue time cards that employees fill out with their hours worked. The completed cards are returned to payroll departments and used to update employee pay records.
Order forms. Businesses send out order forms with customer information and product options. Customers complete the forms with their selections and send them back for order fulfillment and billing.
Remittance advices. Suppliers send remittance advice slips with invoices, allowing customers to fill in payment amounts and details. These completed slips are returned with payments and used to update accounts receivable records.
Subscription renewal notices. Publishers send subscription notices pre-filled with subscriber information. Customers confirm, correct, or update their details and return the forms to continue or renew their subscriptions.
Example of a Turnaround Document
For example, an invoice is sent to a customer with a detachable section that the customer is supposed to fill in with the amount of his payment and then return along with the payment. This detachable section identifies the customer, thereby making it easier for the company’s data entry staff to log the cash receipt against the correct customer. Otherwise, there would be a risk of entering the payment into the account of a different customer.