An order confirmation is a company's written confirmation of the receipt and acceptance of a customer order. It provides binding documentation of the contract content and represents important evidence in business transactions.
The order confirmation is much more than a formality. It is a central document in the commercial process and serves as legally binding proof of the agreed contract. Whether in online trading, service contracts, or traditional B2B transactions – it provides security for both parties.
A written confirmation is particularly essential for verbal or telephone agreements. It summarizes all important contract components such as goods, price, quantity, delivery date, payment terms, and scope of services. This eliminates any potential ambiguities early on.
The order confirmation also helps with internal organization. For many companies, it serves as the basis for production planning, warehousing, or logistics management. In many industries, it is therefore an integral part of the workflow.
Depending on the industry and company size, the order confirmation can be generated automatically via an ERP system or created manually. Confirmations sent by email are also considered legally valid if they accurately reflect the content.
Another advantage: In the event of a dispute, the order confirmation can be used as evidence. It shows that an agreement has been reached regarding the order and the agreed terms.
It is relevant not only for sellers but also for customers. It allows them to check whether the ordered product or requested service has been correctly recorded. Any errors or misunderstandings can thus be identified and corrected early on.
The order confirmation is also important for tax purposes. Although it is not an invoice, it documents an impending transaction and can therefore contribute to internal control.
It must be distinguished from the confirmation of receipt, which merely confirms that an inquiry has been received – not that it has been accepted. The contract is only concluded with the order confirmation.
