diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.py b/erpnext/buying/doctype/purchase_order/purchase_order.py
index a6b2d15d4a3..231374d5e62 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.py
@@ -745,8 +745,10 @@ def set_missing_values(source, target):
 
 @frappe.whitelist()
 def make_purchase_receipt(source_name, target_doc=None):
+	has_unit_price_items = frappe.db.get_value("Purchase Order", source_name, "has_unit_price_items")
+
 	def update_item(obj, target, source_parent):
-		target.qty = flt(obj.qty) - flt(obj.received_qty)
+		target.qty = flt(obj.qty) - flt(obj.received_qty) if not has_unit_price_items else 0
 		target.stock_qty = (flt(obj.qty) - flt(obj.received_qty)) * flt(obj.conversion_factor)
 		target.amount = (flt(obj.qty) - flt(obj.received_qty)) * flt(obj.rate)
 		target.base_amount = (
@@ -777,7 +779,9 @@ def make_purchase_receipt(source_name, target_doc=None):
 					"wip_composite_asset": "wip_composite_asset",
 				},
 				"postprocess": update_item,
-				"condition": lambda doc: abs(doc.received_qty) < abs(doc.qty)
+				"condition": lambda doc: (
+					abs(doc.received_qty) < abs(doc.qty) if not has_unit_price_items else True
+				)
 				and doc.delivered_by_supplier != 1,
 			},
 			"Purchase Taxes and Charges": {"doctype": "Purchase Taxes and Charges", "reset_value": True},
diff --git a/erpnext/buying/doctype/purchase_order/test_purchase_order.py b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
index 97d87d931db..71466e57c27 100644
--- a/erpnext/buying/doctype/purchase_order/test_purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
@@ -5,7 +5,7 @@
 import json
 
 import frappe
-from frappe.tests import IntegrationTestCase, UnitTestCase
+from frappe.tests import IntegrationTestCase, UnitTestCase, change_settings
 from frappe.utils import add_days, flt, getdate, nowdate
 from frappe.utils.data import today
 
@@ -61,6 +61,13 @@ class TestPurchaseOrder(IntegrationTestCase):
 		po.save()
 		self.assertEqual(po.items[1].qty, 1)
 
+	def test_purchase_order_zero_qty(self):
+		po = create_purchase_order(qty=0, do_not_save=True)
+
+		with change_settings("Buying Settings", {"allow_zero_qty_in_purchase_order": 1}):
+			po.save()
+			self.assertEqual(po.items[0].qty, 0)
+
 	def test_make_purchase_receipt(self):
 		po = create_purchase_order(do_not_submit=True)
 		self.assertRaises(frappe.ValidationError, make_purchase_receipt, po.name)
@@ -1239,6 +1246,82 @@ class TestPurchaseOrder(IntegrationTestCase):
 		po.reload()
 		self.assertEqual(po.per_billed, 100)
 
+	@IntegrationTestCase.change_settings("Buying Settings", {"allow_zero_qty_in_purchase_order": 1})
+	def test_receive_zero_qty_purchase_order(self):
+		"""
+		Test the flow of a Unit Price PO and PR creation against it until completion.
+		Flow:
+		PO Qty 0 -> Receive +5 -> Receive +5 -> Update PO Qty +10 -> PO is 100% received
+		"""
+		po = create_purchase_order(qty=0)
+		pr = make_purchase_receipt(po.name)
+
+		self.assertEqual(pr.items[0].qty, 0)
+		pr.items[0].qty = 5
+		pr.submit()
+
+		po.reload()
+		self.assertEqual(po.items[0].received_qty, 5)
+		# PO still has qty 0, so billed % should be unset
+		self.assertFalse(po.per_received)
+		self.assertEqual(po.status, "To Receive and Bill")
+
+		# Test: PR can be made against PO as long PO qty is 0 OR PO qty > received qty
+		pr2 = make_purchase_receipt(po.name)
+		self.assertEqual(pr2.items[0].qty, 0)
+		pr2.items[0].qty = 5
+		pr2.submit()
+
+		po.reload()
+		self.assertEqual(po.items[0].received_qty, 10)
+		self.assertFalse(po.per_received)
+		self.assertEqual(po.status, "To Receive and Bill")
+
+		# Update PO Item Qty to 10 after receipt of items
+		first_item_of_po = po.items[0]
+		trans_item = json.dumps(
+			[
+				{
+					"item_code": first_item_of_po.item_code,
+					"rate": first_item_of_po.rate,
+					"qty": 10,
+					"docname": first_item_of_po.name,
+				}
+			]
+		)
+		update_child_qty_rate("Purchase Order", trans_item, po.name)
+
+		# PO should be updated to 100% received
+		po.reload()
+		self.assertEqual(po.items[0].qty, 10)
+		self.assertEqual(po.per_received, 100.0)
+		self.assertEqual(po.status, "To Bill")
+
+	@IntegrationTestCase.change_settings("Buying Settings", {"allow_zero_qty_in_purchase_order": 1})
+	def test_bill_zero_qty_purchase_order(self):
+		po = create_purchase_order(qty=0)
+
+		self.assertEqual(po.grand_total, 0)
+		self.assertFalse(po.per_billed)
+		self.assertEqual(po.items[0].qty, 0)
+		self.assertEqual(po.items[0].rate, 500)
+
+		pi = make_pi_from_po(po.name)
+		self.assertEqual(pi.items[0].qty, 0)
+		self.assertEqual(pi.items[0].rate, 500)
+
+		pi.items[0].qty = 5
+		pi.submit()
+
+		self.assertEqual(pi.grand_total, 2500)
+
+		po.reload()
+		self.assertEqual(po.items[0].amount, 0)
+		self.assertEqual(po.items[0].billed_amt, 2500)
+		# PO still has qty 0, so billed % should be unset
+		self.assertFalse(po.per_billed)
+		self.assertEqual(po.status, "To Receive and Bill")
+
 
 def create_po_for_sc_testing():
 	from erpnext.controllers.tests.test_subcontracting_controller import (
diff --git a/erpnext/buying/doctype/request_for_quotation/test_request_for_quotation.py b/erpnext/buying/doctype/request_for_quotation/test_request_for_quotation.py
index 038a7640059..f400f4506f2 100644
--- a/erpnext/buying/doctype/request_for_quotation/test_request_for_quotation.py
+++ b/erpnext/buying/doctype/request_for_quotation/test_request_for_quotation.py
@@ -49,6 +49,7 @@ class TestRequestforQuotation(IntegrationTestCase):
 
 		with change_settings("Buying Settings", {"allow_zero_qty_in_request_for_quotation": 1}):
 			rfq.save()
+			self.assertEqual(rfq.items[0].qty, 0)
 
 	def test_quote_status(self):
 		rfq = make_request_for_quotation()
@@ -190,8 +191,8 @@ class TestRequestforQuotation(IntegrationTestCase):
 		supplier_doc.reload()
 		self.assertTrue(supplier_doc.portal_users[0].user)
 
-	@change_settings("Buying Settings", {"allow_zero_qty_in_request_for_quotation": 1})
-	def test_map_supplier_quotation_from_zero_qty_rfq(self):
+	@IntegrationTestCase.change_settings("Buying Settings", {"allow_zero_qty_in_request_for_quotation": 1})
+	def test_supplier_quotation_from_zero_qty_rfq(self):
 		rfq = make_request_for_quotation(qty=0)
 		sq = make_supplier_quotation_from_rfq(rfq.name, for_supplier=rfq.get("suppliers")[0].supplier)
 
diff --git a/erpnext/buying/doctype/supplier_quotation/test_supplier_quotation.py b/erpnext/buying/doctype/supplier_quotation/test_supplier_quotation.py
index d1f03586a36..af250cc63e3 100644
--- a/erpnext/buying/doctype/supplier_quotation/test_supplier_quotation.py
+++ b/erpnext/buying/doctype/supplier_quotation/test_supplier_quotation.py
@@ -39,6 +39,7 @@ class TestPurchaseOrder(IntegrationTestCase):
 
 		with change_settings("Buying Settings", {"allow_zero_qty_in_supplier_quotation": 1}):
 			sq.save()
+			self.assertEqual(sq.items[0].qty, 0)
 
 	def test_make_purchase_order(self):
 		sq = frappe.copy_doc(self.globalTestRecords["Supplier Quotation"][0]).insert()
@@ -60,7 +61,7 @@ class TestPurchaseOrder(IntegrationTestCase):
 
 		po.insert()
 
-	@change_settings("Buying Settings", {"allow_zero_qty_in_supplier_quotation": 1})
+	@IntegrationTestCase.change_settings("Buying Settings", {"allow_zero_qty_in_supplier_quotation": 1})
 	def test_map_purchase_order_from_zero_qty_supplier_quotation(self):
 		sq = frappe.copy_doc(self.globalTestRecords["Supplier Quotation"][0])
 		sq.items[0].qty = 0
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 7af722a95ed..07bc96faeb0 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -3658,9 +3658,9 @@ def update_child_qty_rate(parent_doctype, trans_items, parent_doctype_name, chil
 		)
 		if amount_below_billed_amt and row_rate > 0.0:
 			frappe.throw(
-				_("Row #{0}: Cannot set Rate if amount is greater than billed amount for Item {1}.").format(
-					child_item.idx, child_item.item_code
-				)
+				_(
+					"Row #{0}: Cannot set Rate if the billed amount is greater than the amount for Item {1}."
+				).format(child_item.idx, child_item.item_code)
 			)
 		else:
 			child_item.rate = row_rate
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index 32d3e4171ec..0ad62f7d512 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -13,7 +13,6 @@ from pypika import functions as fn
 import erpnext
 from erpnext.accounts.utils import get_account_currency
 from erpnext.assets.doctype.asset.asset import get_asset_account, is_cwip_accounting_enabled
-from erpnext.assets.doctype.asset_category.asset_category import get_asset_category_account
 from erpnext.buying.utils import check_on_hold_or_closed_status
 from erpnext.controllers.accounts_controller import merge_taxes
 from erpnext.controllers.buying_controller import BuyingController