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A purchase order (PO) is a key document in the purchasing process, involving two main parties: the buyer and the seller. The process begins with negotiations regarding the type, volume, and price of goods or services, along with additional terms like the delivery date. After negotiations, the buyer creates a purchase order and sends it to the seller. If accepted, the seller confirms it, establishing a legally binding contract between both parties. This video tutorial from Bullseye Money aims to clarify the purpose and function of purchase orders alongside quotes and invoices, helping business owners understand finance better.