An order confirmation is the message a supplier sends to a customer to confirm an order has been accepted and to state exactly what will be supplied. It sets out the products, quantities, prices and delivery date the supplier has committed to, along with any changes made to the original request.
In wholesale distribution, the order confirmation is the last chance for the retailer to catch a mistake before the goods arrive. A clear confirmation prevents most delivery disputes.
What to include in an order confirmation
- Your sales order number and the customer’s PO or reference number
- Customer and delivery details
- Each confirmed line item with SKU, description, quantity, unit of measure and price
- Any changes from the original order, such as substitutions, reduced quantities or corrected prices
- Items on backorder and when they are expected
- Expected delivery date and shipping method
- Payment terms
- A contact point for questions
The changes section matters most. If a retailer ordered 12 cases of an item and only 8 are available, that has to stand out rather than sit buried in a line of a table.
Order confirmation vs related documents
| Document | Sent by | Purpose |
|---|---|---|
| Purchase order | Buyer | Requests goods |
| Order confirmation | Supplier | Confirms what will be supplied |
| PO acknowledgement | Supplier | Formal acceptance, often as EDI 855 |
| Delivery note | Supplier | Lists what is physically delivered |
| Invoice | Supplier | Requests payment |
PO acknowledgement and order confirmation are often used to mean the same thing. In practice, acknowledgement tends to describe a formal response to a structured purchase order, while order confirmation covers any order, including phone and portal orders.
Why order confirmations get skipped
On a busy order desk, confirmations are usually the first task to slip. Reps prioritise getting orders into the ERP, then send confirmations in a batch at the end of the day, or not at all when the queue is long. Orders placed in the evening often get no confirmation until the next morning.
The cost shows up later. Retailers call to ask whether their order was received, which adds more work to the same team. Substitutions that were never confirmed turn into refused deliveries and credits.
Good practice for order confirmations
Send them quickly. A confirmation that arrives hours after the order has already lost most of its value.
Make changes obvious. Put substitutions, shortfalls and price corrections at the top, not inside a table.
Use the customer’s channel. Retailers who order by text usually want confirmation by text.
Keep the format consistent. Regular buyers learn where to look when the layout stays the same.
Link it to your records. Store the confirmation against the sales order so your team can see what was promised. Tools that help with this are covered in this guide to managing sales orders.
How Ordana helps
Ordana confirms every order as soon as it closes. The Ordana Desk Agent validates the order, resolves any exceptions with the retailer first, writes the sales order into your ERP and sends the confirmation straight away, including any substitutions the buyer approved.
Confirmations go out through the channel each retailer actually uses, whether that is email or text. Because the agent works through the night and at weekends, an order placed on Saturday evening is confirmed then, not on Monday morning. Nothing waits in a queue for a rep to get to it.
Schedule a demo to see how Ordana confirms your orders.
Frequently asked questions
Is an order confirmation legally binding?
It generally shows the supplier accepted the order and forms part of the agreed terms. Check your own terms and conditions.
How soon should an order confirmation be sent?
As soon as the order is accepted. Same-day confirmation is the usual expectation, and faster is better.
What if the supplier cannot fulfil the whole order?
The confirmation should clearly state which lines are reduced, substituted or backordered, so the retailer can plan.
Is an order confirmation the same as an invoice?
No. A confirmation states what will be supplied. An invoice requests payment after delivery.
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