A purchase order is a formal document created by a buyer to request goods or services from a seller. It outlines the details of the order, including quantities, prices, and delivery dates. This document serves as a legally binding agreement once accepted by the seller, ensuring both parties understand the terms of the transaction. Purchase orders help businesses manage their purchasing processes efficiently. They provide a clear record of what has been ordered, making it easier to track expenses and inventory. Additionally, they can streamline communication between the buyer and seller, reducing the chances of misunderstandings or disputes.