"Need to define less rules with just one each IC payables and one IC receivables balancing lines"

Summary:

Need help in understanding how IC balancing rules work and what Oracle means by replacing the company and intercompany segments.

Content (please ensure you mask any confidential information):

Respected Gurus,

I need to know what Oracle keeps referring to when they say "One needs to define less number of rules" and "replacing company and intercompany segment". Do they mean if I have 10 entities and I define a rule for LE1 and LE2, it should suffice and the intercompany will automatically replace the company and intercompany segment for all other possible combinations? Essentially, I need a detailed understanding of how these rules work, and whether do I need to define the rules for all the pairs and the reverse transactions as well? Thanks.