A purchase order is a formal document created by a buyer to request goods or services from a seller. It outlines the specific items, quantities, and agreed prices, serving as a contract between both parties. Once the seller accepts the purchase order, it confirms the buyer's intent to purchase and the seller's commitment to fulfill the order. Purchase orders help businesses manage their purchasing process efficiently. They provide a clear record of what has been ordered, making it easier to track inventory and expenses. Additionally, they can help prevent misunderstandings between the buyer and seller regarding the terms of the transaction.