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how to configure intercompany balancing with transaction type IC invoicing

Summary:

Fro a projects perspective I need to create invoices for transactions between 2 legal entities within the same business unit. In Project Contracts I have an Intercompany contract. I have transfer prices between both legal entities defined. But I am trying to define the Intercompany Balancing Rules between both legal entities using transaction type IC Only Invoicing. However the Source and category automatically change to None. As a result no intercompany balancing accounting entries are generated. Is it possible to use the transaction type IC Only Invoicing and ensure the balancing accounting entries are created?

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