How does Intercompany elimination work when ownership management is disabled

Summary:

In an Oracle FCCS application where Ownership Management is not enabled, we’ve noticed that Intercompany eliminations are occurring at the immediate parent level, rather than at the first common parent of the involved entities.

Question:
Is this the default behavior in FCCS when Ownership Management is disabled?
If so, is there any official documentation or example that confirms this behavior?

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