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In the video tutorial on Microsoft Dynamics 365 Business Central, viewers learn how to create a purchase order. Purchase orders and purchase invoices are used to register purchase costs and track accounts payable, with purchase orders specifically utilized when suppliers are partially shipping orders. To create a purchase order, users search for "Purchase Orders" and select the link. After choosing "New," the vendor must be selected, automatically updating the purchase header with the vendor's address, contact info, payment terms, and posting details pulled from the vendor card. Users have the option to edit this information. The tutorial emphasizes the similarities and key differences between purchase orders and invoices.