Intercompany Settlements

Hi all,

I have a question regarding intercompany settlements. We have 2 companies within a grup: Company 1 (with BU 1) and Company 2 (with BU 2). Company 1 issues an invoice to Company 2 (Company 2 was included as a customer in the Customer Master). What are the issues that should be taken into consideration in order to have the following accounting entries:

ACCOUNT                                                 DEBIT          CREDIT
1.7000 (Revenue Account)                                         1000
1.4111 (Receivables)                                1240
1.4427 (VAT Account)                                                 240
2.4800  (Intercompany Account)              1000
1.4800 (Intercompany Account)                                  1000

I must mention the fact that the intercompany settlements method I used was 2 (Detailed Method).

Thank you.

Best regards,

Luciana