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How are requests that end in purchase orders and requests that end in contracts different?

The difference lies in the outcome and ongoing utility of the final transaction created from the supplier's accepted offer. When creating a request, you must choose whether it will conclude in a Purchase Order (PO) or a Contract.

Feature Request Ending in a Purchase Order Request Ending in a Contract
Final Outcome Creates a single **Purchase Order (PO)** after the offer is accepted. Creates a recurring **Contract** after the offer is accepted.
Duration/Usage The agreed terms and pricing are valid only for that single, **one-time** order. The agreed terms and pricing are saved as an **ongoing agreement** with an expiry date.
Subsequent Orders The PO is a **one-time order**, no future orders are tracked against it. Allows for the creation of **multiple Purchase Orders** (release orders) over time, all tracked against the original contract terms and budget.
Tracking Tracks the fulfillment and payment of that **single order**. Tracks how much of the original contract's total value has been fulfilled by subsequent POs.

For more information, please watch the following video tutorials:

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