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A purchase order (PO) is a crucial document in the purchasing process, typically involving two main parties: the buyer and the seller. The process begins with negotiations on the terms, including types, volume, pricing of goods and services, and delivery dates. Once negotiations are complete, the buyer creates a PO and sends it to the seller. If the seller accepts the terms, they respond with a purchase order confirmation, resulting in a legally binding contract between the buyer and seller. This video by Bullseye Money aims to help business owners understand the significance of purchase orders in managing their finances effectively.
