Briton, the problem with the default arrangement regarding a separate Receiving document between a PO and the Bill is that if I receive in one location and pay from another I have a communication link missing. Using the "Create A Bill as the receiver instrument there is no way to know if that is a bill or a item receipt only. This can get confusing when the person posting the bill on arrival already sees a bill for that item. No it is confusing as to whether there is already a bill posted or if what the  poster is looking at is an already entered bill. If one person is doing everything from one location maybe that can be done somewhat satisfactorily but when multiple persons at various locations need to manipulate information (Isn't that what the QBO was all about in the first place) there is no accurate audit trail. In my opinion this violates even the most basic of accounting practices. It is time for a separate receiving report.