There are two ways to manage intercompany transactions in E-Business Suite. They are as follows:
Within a single ledger with differences in the balancing segment values
Among multiple ledgers (which will also be managed with differences in balancing segment values)
In the ASM there is a place where you will define the relationship and the accounts to use for the intercompany transactions to be balanced for each given balancing segment value.
You must define intra-company rules for each legal entity in your ledger.
The rule enables automatic inter-company clearing accounts among different balancing segment values. The posting program performs the task of creating additional lines to ensure that each of the balancing segment values can generate an accurate Trial Balance report.
These rules also work for transactions being posted from either AP, AR, or any other subledger, as long as a rule is defined for the source and category combination.