Hi,

Greetings to you!

We should create Record Types when they need to be easily distinguished by an end-user. For example, creating a Record Type on an Account called Real Estate that displays many fields related to Real Estate company, and another Record Type called IT Industry that displays many fields related to IT company, are good to distinguish. In this scenario, users can easily identify what Record Type to select while creating an Account.

We can create Record Types when there is a need to create different Page Layouts, Buttons, Custom Links, etc. (on any Objects) based on different requirements. For instance, if any user needs access to only some required fields based on the Record Type, then the user can access different layouts for different Record Type.

You can use Record Types and Page Layouts combinations to display different Page Layout and Record Type to different sets of profile users. For Example, you can assign two separate page layouts to two different Record Types – one for Real Estate and another for IT Industry if you don’t need to display Developer related fields to your Real Estate.

Considerations for Creating and Updating Record Types:
https://help.salesforce.com/articleView?id=customize_recordtype_considerations.htm&type=5 (https://help.salesforce.com/articleView?id=customize_recordtype_considerations.htm&type=5)

Please refer to the below links which might help you further.

https://adminhero.com/2015/03/02/hands-on-with-page-layouts-and-record-types/

https://www.arkusinc.com/archive/2013/deep-diving-into-salesforce-record-types

I hope it helps you.

Kindly let me know if it helps you and close your query by marking it as solved so that it can help others in the future. It will help to keep this community clean.

Thanks and Regards,
Khan Anas