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hello all welcome in this video session today I will learn how to create the advanced purchase order with respect to purchase requisition okay so for this I need to explain what is the meaning of advanced purchase order or contract business needs should be defined through every requisition if the requisition needs to be converted into contract then it can either be created with respect to requisition or request for quotation supplied by different different vendor getting here we will find how to create the contract or APO with reference to purchase requisition getting my points the contract or APO establish a long-term agreement with a vendor to supply material or service contracts May either be value contracts or quantity contracts value contract have a selling value contract have a ceiling that is the monetary amount that should not be exceeded okay so you should not exceed the amount okay a quantity contract is specified as selling of goods or services that the vendor will provide