An order confirmation is a seller's record acknowledging an order and stating the accepted commercial and fulfillment details. It helps both parties verify what the seller intends to supply before shipment or service delivery.
What should an order confirmation include?
- Buyer and seller details
- Order and purchase-order references
- Items, quantities and specifications
- Prices, currency, taxes and discounts
- Delivery schedule and location
- Payment and shipping terms
- Accepted changes or exceptions
Is an order confirmation the same as an invoice?
No. An order confirmation acknowledges the commercial order. An invoice requests payment for goods or services supplied or due under the agreement. The documents may contain similar fields but serve different purposes.
When does the confirmation create a contract?
That depends on the offer, purchase order, governing terms and applicable law. A confirmation can accept an order, propose changes or simply acknowledge receipt. Businesses should define which documents control when terms conflict.
How should discrepancies be handled?
Compare the confirmation with the approved purchase order and quotation. Resolve differences in price, quantity, specification, delivery or payment terms before fulfillment, and preserve the approved revision.
What should be linked in the operating record?
Connect the quotation, purchase order, order confirmation, amendments, shipment, receipt, invoice and payment reference. This makes later matching and dispute review easier.
