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A purchase order is a crucial document in the purchasing process, typically involving a buyer and a seller. The process starts with both parties negotiating the terms, including the type, volume, and price of goods and services, as well as delivery dates. Once the negotiations are finalized, the buyer creates a purchase order and sends it to the seller. If the seller agrees to the terms, they respond with a purchase order confirmation. At this stage, a legally binding contract is established between the buyer and seller. This tutorial from Bullseye Money aims to help business owners understand the role of purchase orders in finance.
