Order Confirmation Definition and Meaning

Order Confirmation Definition and Meaning

Definition, interesting facts & template

In most cases, the basis for an order confirmation is an offer. An offer can be sent directly by the company or requested by a potential customer, but also by a regular customer. It relates to the delivery of goods or the rendering of services .

The customer can place all or only individual points of an offer as an order. After the order has been placed, the supplier of the goods or the provider of the services creates an order confirmation for the customer.

What is an order confirmation?

An order confirmation is specified in DIN 69905. It notifies the customer that the order has been accepted . The company that creates the confirmation of an order usually has previously created an offer for the delivery of the goods, for the quantity and prices or for a service and its prices. If the customer accepts the offer, he places an order. So that he knows that the order is being carried out, the company creates a corresponding confirmation. Use the invoicing program to easily process orders and create offers. If the customer accepts an offer, the online software automatically creates an order confirmation for you and sends it to the customer. An order confirmation is in most cases made in writing . So the evidence is secured. In order for an order confirmation to actually serve as evidence, it is important that it contains important information. The company that issues the confirmation of an order undertakes to carry out the order under the conditions specified in the offer or agreed in an order negotiation . Especially in the case of large orders, for example for construction work, an order is not only preceded by a simple offer, but also by order negotiation. Thereby important conditions for the execution of the order are determined. These conditions must be set out in the order confirmation.

What must be in the order confirmation?

In the order confirmation, a company informs the customer that his order has been accepted. This must have come about beforehand in writing, by phone or when the two parties involved meet directly. The written confirmation of an order creates clarity and avoids misunderstandings by summarizing the agreements with the customer: the price, the delivery time, the order quantity and other important details. The confirmation of an order is not absolutely necessary from a legal point of view, but it can provide security for both parties. To be on the safe side, summarizing the most important agreements is particularly important for larger orders and new customers. A wisely formulated order confirmation can also encourage private customers in their purchase decision.

Order confirmation as a declaration of intent

An order confirmation is a declaration of intent , which is usually made in writing. The confirmation of an order can deviate from the offer, but then it does not count as acceptance of the contract, but as rejection. In this case, a new offer must be negotiated if the potential customer is still interested in the delivery of goods or the service. Especially with large orders, there is no written order confirmation, but negotiated contracts that both contracting parties sign.

When to write an order confirmation

According to WHOLEVEHICLES, confirmation of an order is not always required when a customer places an order. In some cases, however, written confirmation of an order is mandatory . If an order is changed, an order is placed too late or a customer orders without having received an offer beforehand, an order confirmation is required. If an entrepreneur has made a non-binding offer and a customer places an order thereupon, the entrepreneur must issue a confirmation of the order when accepting the offer. A written order confirmation also makes sense when a customer orders for the first time. This way, misunderstandings can be ruled out.

What must an order confirmation contain?

If an entrepreneur wants to write an order confirmation, he must be guided by his offer and the customer’s order. The confirmation of an order must contain the following points:

  • Name and quantity of the goods
  • Price of the goods
  • Name and scope of the service
  • Price of performance
  • Date for the delivery or for the provision of the service
  • Regulations on the delivery of goods
  • Freight and packaging costs
  • Terms of payment
  • Place of jurisdiction
  • Retention of title.

In terms of the type of transmission, the client has a free choice between post, email or fax. The confirmation of an order does not have to follow any formal rules. There are no specific requirements as to what an order confirmation must contain. It can also have a different designation – for example “confirmation of registration” or “confirmation of booking”. However, some things have become commonplace in terms of content:

  • A thank you for placing the order and possibly (for private customers) a confirmation that the customer made a good choice
  • a precise description of the quantity and type of goods (or services)
  • the unit price and the total price (information with and without VAT)
  • the conditions, delivery dates and other organizational details
  • a reference to the general terms and conditions of the client
  • possibly the request for confirmation of the notification by signature of the customer (absolutely necessary if details of the order confirmation deviate from the previously discussed!)

Sample template of an order confirmation

In many cases, an offer is the basis for an order. Therefore, many companies do not issue an order confirmation, but send the offer or order back to the customer with a confirmation note. The contractor should create the order confirmation as soon as possible after the order has been placed.

Order Confirmation