The journal entry has many primary balancing segment values on both the debit and credit sides

Summary:

The journal entry has many primary balancing segment values on both the debit and credit sides. No clearing company has been set for journal source Spreadsheet and category manual. You must define a clearing company option to generate a balancing line for this intercompany relation.

The issue journal had 5 Balancing segments each from a different legal entity. We have 1 balancing segment per legal entity. The above error shows.

User had created similar case with 3 balancing segments, but the intercompany rule worked fine.

Does that mean 3 balancing segment values is ok and more than 3 causes this issue? The documentation from oracle is not clear.