Deriving Liability Account on AP invoice from Intercompany Balancing Rules for Intercompany Supplier

Summary:

We have a requirement to derive the liability account for an Intercompany Supplier Invoice from the Intercompany Balancing Rules in Oracle Fusion.

The following configurations have already been completed:

• Customer and Supplier Association setup for the intercompany customer and supplier.
• Intercompany Balancing Rules defined for the respective legal entities and primary balancing segment values.
• The balancing rule has been configured with:
  • Source: Payables
  • Category: Other
  • Transaction Type: None

However, when we create an invoice for the intercompany supplier, the invoice is placed on hold with the following errors:

• Invalid Liability Account
• Cannot create liability account

The system is not deriving the liability account from the Intercompany Balancing Rules as expected.