What is an Order Confirmation document?
When Buyers and Sellers in International trade place new orders, the seller (exporter) can send an Order Confirmation document to the buyer (importer) to reconfirm all of the details of the new order. An order confirmation document is usually sent to the buyer after the buyer has issued a Purchase Order document to confirm the new order.
The Exporter must ensure that all information is clearly stated in a correctly formatted Order Confirmation document to avoid having any disputes relating to product quality, specifications, pricing and delivery terms.
Some Exporters are still creating broken Order Confirmation documents using MS Word or Excel. Often these trade documents are missing vital information which causes confusion and disputes between the buyer and seller. Also, a badly formatted document reflects badly on the company that is supplying the goods for export. Watch this video to learn how Exporters can easily create an Order Confirmation document.
Watch how Exporters create Order Confirmation documents 10x faster using IncoDocs.
After the goods have been produced and shipped the Exporter will issue a Commercial Invoice document and other shipping documents and email these to the importer. The importer will use these documents to get the products cleared into the country of import.
What information is included on an Order Confirmation Document?
- Seller’s company name, address and contact details
- Buyer’s company name, address and contact details
- Product Description – including item codes, description, specifications
- Product Quantity
- Product Pricing
- The selling terms agreed (Incoterm) – Refer IncoDocs’ Incoterms Graph
- Invoice Currency
- Shipment Type
- Payment Terms – as negotiated between buyer and seller
- Estimated supply lead time
- Estimated shipping details (vessel name & ETD, if known)
- Bank Details (optional)