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A purchase order is a document essential to the purchasing process, involving two main parties: the buyer and the seller. The process begins with the negotiation of terms, including the type, volume, and price of goods and services, as well as delivery dates. Once negotiations are complete, the buyer creates a purchase order and sends it to the seller. If the seller accepts the terms, they confirm the purchase order, establishing a legally binding contract between the two parties. This tutorial from Bullseye Money aims to help business owners understand finance, specifically focusing on the role and importance of purchase orders in transactions.