Order Confirmations: Definitions, Benefits and Implementation

Who is not familiar with this? Order confirmations arrive by e-mail, end up in various mailboxes or, in the worst case, as a fax at reception. They have to be printed out, checked, stamped, filed and documented in Excel. A process that not only takes time, but is also prone to errors – especially if quantities, prices or delivery dates differ from the original order.

This is exactly where digital order confirmations come in. They automate workflows, minimize sources of mistakes and create transparency across all relevant processes. Many companies today are faced with the challenge of efficiently managing increasing order volumes and complex supply chains. Those who still work manually here are not only wasting resources, but also risk operational friction losses.

Digital solutions enable automated and structured processing of incoming order confirmations – directly from emails, PDFs or scans. This guide explains how this works and why it is worth digitizing this often underestimated document.

What is an Order Confirmation?

An order confirmation is a supplier’s formal response to an order. It serves as written proof that an offer has been accepted and that the order will be executed under the specified conditions. In Germany, the order confirmation is legally regulated in the German Civil Code (BGB), in particular in paragraphs 145 to 150. In Austria, corresponding regulations can be found in the Austrian Civil Code (ABGB).

It is important to distinguish it from related terms:

• An offer is a legally binding proposal to conclude a contract.
• A contract is created when this offer is accepted.
• The order confirmation documents this acceptance explicitly or implicitly, especially if no contract is expressly signed.
• The invoice, on the other hand, requests payment for the agreed service.

The order confirmation therefore has a clear legal function: it sets out what has been ordered, what will be delivered and on what terms. In the B2B environment in particular, it is indispensable for avoiding misunderstandings and documenting the order status in a comprehensible manner.

When is an Order Confirmation Necessary?

An order confirmation is always useful or even legally required if the order is not in writing or not fully documented. This applies in particular to

• Verbal or telephone orders: Here, the AB serves to fix the order in writing.
• Deviations from the original offer: Even small price or quantity changes require new approval.
• First orders or new customer relationships: The AB creates a contractual basis here.

In addition, the order confirmation is an established part of the internal control system in many companies. It provides clarity in the event of queries or complaints.