I'm still learning about the inventory management side of the system and how it impacts accounting. If I have a Purchase Order and I create an Item Receipt, it seems like if the PO is updated with a new item(s), I can't add the item(s) to that Item Receipt unless I either delete it and rebuild it (by creating a new one) or Bill the current Item Receipt and create a new Item Receipt with only the new items that I'm trying to add. Is my understanding correct here, or would what I just described negatively impact accounting or quantities some how? Any help is greatly appreciated.

Yes once an item receipt is posted you can only remove items you cannot add more items to it. You would want to post a second item receipt for additional items Also it’s not best practice to go back and change past item receipts as they are posting transactions and could cause changes in your past financial statements

@AI1 thanks for your response.

ditto to @al1. The Item Receipt impacts item costs which of there are already sales by the time you play with your IR then it impacts your COGs, GP etc. Tightening the PO > IR> Bill process and the variance accounts is a good activity.