Order acknowledgment
Also called order confirmation, PO acknowledgment
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is order acknowledgment?
An order acknowledgment is a supplier’s confirmation that it accepted a purchase order, stating what will ship, at what price and when. It is the customer’s first chance to catch an error before the goods leave the warehouse; in EDI it is the 855 transaction.
Order acknowledgment example
The PO asked for 50 filters, but the acknowledgment reads 50 cases of 12. The buyer catches the unit-of-measure mismatch before anything ships.
Related terms
- Purchase order (PO)A purchase order (PO) is a buyer’s document ordering specific items, in specific quantities and at stated prices, from a supplier.
- Sales orderA sales order is the distributor’s own record of a customer order in its ERP, listing the items, quantities, prices, ship-to address and delivery terms.
- Electronic data interchange (EDI)Electronic data interchange (EDI) is the exchange of business documents, such as POs and invoices, between two companies’ systems in a standard format.
- Unit of measure (UOM)A unit of measure (UOM) is the unit an item is bought, stocked or sold in, such as each, box, case, pallet, foot or pound.
