Blanket Order Approval - Correct Setup

Hello,

Hoping someone can help me.  We are on Apps 9.0 with 9.1.3.1 TR

I am trying to set up Procurent Blanket Order - OB type.  We want to be able to have the blanket orders be approved before any releases are done.  I am attaching the set up that I am testing.  I keep getting the same error.  Can someone tell me what I am doing wrong??  Thought this would be simple, but it is turning into lots of failed testing!

I do have an alternate way of creating a blanket order but it would require a requistion be created and approved, then converted to an OB order.  I am just trying to give the business another way to process if no requistion is done.