Purchasing, or procurement, is the process of acquiring goods and services in exchange for money. The purchase order is an important document that formalizes the agreement between a buyer and a seller. It outlines the quantity and cost of materials being purchased, delivery details, contact information, payment terms, and more. The purchase order serves as a legal document between both parties and is often used to protect the interests of both the buyer and the seller. By understanding how purchase orders work, businesses can ensure they are making informed and beneficial procurement decisions.