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A purchase order (PO) is a crucial document in the purchasing process, typically involving two main parties: the buyer and the seller. It begins with negotiations on the details such as type, volume, price of goods or services, and delivery dates. Once terms are agreed upon, the buyer creates the PO and sends it to the seller. If the seller accepts the terms, they respond with a purchase order confirmation. At this stage, a legally binding contract between the buyer and seller is established. This tutorial from Bullseye Money helps business owners understand the purpose and significance of purchase orders within the broader purchasing process.
