intercompany sale (seprate companies for each comapny code)

Hi All,

There are two company codes which belongs to same group but they have inter company sale.

1). So in that case should we create one company for these two comapny codes.

2). Or we should create two seprate companies for each comapny code, So can treate these company codes as a trading partner for each other for the purpose of consolidation.

I want to know that what are the advantages we get if we create two companies for two company codes which belongs to the same group.

Waiting for your reply.

Thanks.

SriLaxmi