I generated an sitemap.xml file through the Catalog > Google sitemap area.
What I experience is that the product url's in the .xml appears to be incorrect url-path'wise.
So a product url appears as: http://www.domain.com/product1.html
While the correct on-site canonical url would be: http://www.domain.com/category1/subcat/product1.html
In Configuration > Catalog > SEO, all is set to Yes/activated.
Any ideas on why this is happening and how it can be fixed?