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A purchase order is a document used in the purchasing process, typically involving two parties: the buyer and the seller. The process begins with negotiations on the terms of the purchase, including the type, volume, price of goods or services, and delivery date. Once negotiations are complete, the buyer creates a purchase order and sends it to the seller. If the seller accepts the terms, they respond with a purchase order confirmation. This exchange leads to a legally binding contract between the buyer and seller, solidifying the agreed-upon details of the transaction.