intra company functionality

Hi Team
I have a question regarding Intra company functionality.

Our client has 7 segment flexfield.  Presently, they have second segment as the balancing segment and 7th segment as inter company qualifier.

01.02.000.000.0002.0.02  (last segment is intra company qualifier).

01.02.000.000.0002.0.01  (last segment is intra company qualifier).

In this case, it did not create intra company entry.  Is it expected functionality???

Second question

For the below mentioned entry, it created off set account.

01.02.000.000.0002.0.02
01.01.000.000.0002.0.02
Intra company balancing lines
01.02.000.000.0116.1.01
01.01.000.000.0116.1.02

Is it expected functionality??  Pl clarify

Thanks in Advance.........

Regards
Sridhar.