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A purchase order is a crucial document in the purchasing process, typically involving two parties: the buyer and the seller. It begins with negotiations on terms like goods, services, volume, price, and delivery dates. Once these terms are finalized, the buyer issues a purchase order to the seller. If the seller agrees, they respond with a purchase order confirmation, creating a legally binding contract between both parties. This summary provides an overview of the key steps in the purchase order process and its significance in business transactions.