Internal Sales Order with Profile Option INV:Intercompany Invoice for Internal Orders = YES

A question on functionality of Internal Sales Orders and the Profile Option - INV:Intercompany Invoice for Internal Orders = YES

With the above configuration, the Accounting transactions don't seem logical.

1)  Shipment of Internal Order - Dr InterOrg AR (from Shipping Network), Cr Inventory valuation.  The Shipping Network field "InterOrg AR" is required.

2)  Create Intercompany AR, Run AutoInvoice - Dr. AR ( based on AR Transaction Type setup) - now I have 2 Debits to Receivables.  Am I supposed to have the Revenue Account also be setup with the InterOrg Receivables account?  This way the Accounting from the invoice would wash to 0.

3)  Or, is there a different setup for using Intercompany Invoice for Internal Orders.