What is the purpose of item receipt record ? Will every purchase order should have a item receipt as well as a vendor bill?

Item Receipt is a transaction that allows you to keep track of the physical incoming delivery or receipt of goods and even services. Unless the amount is 0, the IR is posting to the GL if assembly and inventory items are used or other item types where the General Accrual box is ticked in the Item records. A PO would always have an IR: 1. If it contains an inventory item, assembly item or other item type where the To Be Fulfilled/Received box is checked in the Item record; OR 2. The Expenses sublist is used.

Thank you.

Every purchase order must (or better to) have a vendor bill. If you are a service company receipt is not required.