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In this tutorial, Talha demonstrates how to create a purchase order in Google Sheets, an essential document for trade transactions. He begins by selecting a purchase order template from the Google Sheets template gallery, noting that users can also create a custom template if needed. Next, Talha explains the necessity of creating various sheets to manage different data, including a vendor sheet for vendor information, an items sheet for item details, an APO logs sheet to record each order, and a settings sheet for the purchase order number. After setting up these sheets, users can proceed to create the purchase order sheet.