Internal Orders Invocing related

Hello All,

Question is related to AR - AP invoice generation for internal orders.  We are on R12.1.3.  No Oracle document is clear on below scenario.

Scenario : 1 Ledger -- 1 LE and they are linked to 2 seperate OUs i.e. OU1 and OU2.  Shipping org/Source = OU1 and Receiving org/Target = OU2. Inventory flows from OU1 to OU2.

Questions:

1.) Will this be called as "Internal Orders"?

2.) In R12, above transaction is called "Intercompany" or "Intracompany"?

3.) As we have two seperate OUs, will it generate AR-AP invoices for respective OUs? If no, then why?

Thanks....