Selecting an Accounting Framework

There are three accounting frameworks that agencies can implement: Public Sector Accounting, Financials Cloud Subledger Accounting (SLA), or Financials Cloud Applications.

Note: An agency must be an Oracle Financials Cloud customer to select Financials Cloud Subledger Accounting as an accounting framework.

You select the accounting framework for your agency in Functional Setup Manager (FSM).

Selecting an Accounting Framework Option

1. Access FSM by selecting Setup and Maintenance in the navigator.

2. Select a Public Sector offering such as Public Sector Permits or Public Sector Planning and Zoning.

   Note: The accounting framework selection you make will apply to all of your Oracle Permitting and Licensing offerings.

3. Click the Actions button for the Accounting functional area and select Change Feature Selection.

4. On the Edit Features: Accounting page, click the Enable icon.

5. On the Feature Name: Accounting Framework Option modal page, select an accounting framework for your agency. Options are:

   • Public Sector Accounting

   • Financials Cloud Subledger Accounting

   • Financials Cloud Applications

   The option you select determines which tasks appear in the task list for the Accounting functional area. The setup tasks for Public Sector Accounting are documented in this chapter. For more information on Oracle Financials Cloud Subledger Accounting, see Oracle Financials Cloud  Implementing Subledger Accounting and Oracle Financials Cloud  Using Subledger Accounting.

   The Financials Cloud Applications option allows you to configure Public Sector Community Development to integrate with Oracle Receivables. This enables your agency to generate miscellaneous receipts for payments received in Public Sector Community Development and send them to Oracle Receivables for processing and accounting. For more information, see Oracle Receivables Integration Overview.

   Note: FSM allows you to select the Public Sector Accounting and the Financials Cloud Subledger Accounting options, but that is not currently supported. You should select only one of these two options.Additionally, FSM allows you to leave both check boxes blank, but that is not supported. If you do not select an accounting framework, the entire Accounting functional area will be hidden in FSM and you will not have access to critical accounting setup that is required for the Generate Accounting process. Without that setup, the process generates an error for each accounting transaction because there are no accounting rules defined.

6. Click Save and Close.

7. Click Done.

Financials Cloud Subledger Accounting Integration

Oracle Permitting and Licensing has been registered as a subledger application within Financials Cloud. The setup tasks are available in the Accounting functional area under each Public Sector Community Development offering to help you set up your subledger.

Journal Source and Categories

Journal entries created for transactions from Oracle Permitting and Licensing are assigned the following journal source and categories. Oracle Permitting and Licensing assigns default journal categories to each event class.

This table displays the journal sources and journal categories for Channel Revenue Management.

Field	Values
Journal Source	PS Compliance
Journal Category	Permit Receipts Cash Adjustment

Oracle Permitting and Licensing Event Classes

An accounting event is a business event in Oracle Permitting and Licensing that has an accounting impact. Subledger Accounting categorizes accounting events as event types. Event types are grouped into event classes. The Oracle Permitting and Licensing accounting event model is predefined for you and includes each event class and its life cycle. This accounting event model forms the basis for creating subledger accounting. An event class enables Subledger Accounting to handle the accounting for similar business events in a consistent manner.

For Oracle Permitting and Licensing, the Subledger Accounting integration is centered around deriving accounting rules for three accounting event classes:

Event Class	Event Types
Payments	Deposit Account - Deposits Fee Payments Fee Payments with Credit Fee Payments Unapplied
Payment Refunds	Deposit Account – Deposit Refunds Fee Refunds
Cash Drawer Reconciliation Adjustments	Reconciliation Adjustment Created

Predefined journal entry rule sets are used to generate accounting for payments, payment refunds and cash drawer reconciliation adjustments. The accounts to debit and credit are defined in the Subledger Accounting mapping sets assigned to the journal entry rule set.

For more information about how to define the appropriate mapping sets, see Oracle Permitting and Licensing: Financial Cloud Subledger Accounting Integration (Doc ID 2907811.1) in My Oracle Support.

Most of the mapping set input source fields do not currently have LOV support. Consequently, it is very important to take care when specifying values for these fields to ensure they are valid. Those fields are listed below along with where the valid values for the field may can be found:

Journal Entry Rule Set	Mapping Set	Input Source Field	Valid Values
Payments	LNP Fee Revenue	Fee Item ID	Fee Items setup page
	LNP Fee Revenue	Record Type Code	Permit Type, BL Type, Planning App Type setup pages
	CE Fee Revenue	Fee Item ID	Fee Items setup page
	CE Fee Revenue	Issue Subtype	Issue Subtype setup page
	Fee Receipt On-Account	On-Account Source	Lookup Codes for ORA_PSC_CC_ONACCT_SOURCE
	Fee Receipt On-Account	Payment Method Code	LOV provided
	Deposit Account Liability	Deposit Account Purpose	Lookup Codes for ORA_PSC_CC_DEPOSIT_PURPOSE
	Deposit Account Liability	Deposit Account Type	Lookup Codes for ORA_PSC_CC_DEPOSIT_ACCT_TYPE
	Deposit Account Liability	Classification (Offering)	Lookup Codes for ORA_PSC_CC_CLASSIFICATION
	Fee Receipt Cash Drawer Methods	Payment Method Code	LOV provided
	Fee Receipt Other Methods	Payment Method Code	LOV provided
Payment Fee Refunds	Deposit Account Liability Refund	Deposit Account Purpose	Lookup Codes for ORA_PSC_CC_DEPOSIT_PURPOSE
	Deposit Account Liability Refund	Deposit Account Type	Lookup Codes for ORA_PSC_CC_DEPOSIT_ACCT_TYPE
	Deposit Account Liability Refund	Classification (Offering)	Lookup Codes for ORA_PSC_CC_CLASSIFICATION
	Refund Cash	Refund Method Code	LOV provided
	Refund	Refund Reason Code	LOV provided
	Refund Overpayment	Refund Method Code	LOV provided
Deposit Account Deposits	Deposit Account Liability	Deposit Account Purpose	Lookup Codes for ORA_PSC_CC_DEPOSIT_PURPOSE
	Deposit Account Liability	Deposit Account Type	Lookup Codes for ORA_PSC_CC_DEPOSIT_ACCT_TYPE
	Deposit Account Liability	Classification (Offering)	Lookup Codes for ORA_PSC_CC_CLASSIFICATION
	Fee Receipt Other Methods	Payment Method Code	LOV provided
Deposit Account Refunds	Refund Cash	Refund Method Code	LOV provided
	Deposit Account Liability Refund	Deposit Account Purpose	Lookup Codes for ORA_PSC_CC_DEPOSIT_PURPOSE
	Deposit Account Liability Refund	Deposit Account Type	Lookup Codes for ORA_PSC_CC_DEPOSIT_ACCT_TYPE
	Deposit Account Liability Refund	Classification (Offering)	Lookup Codes for ORA_PSC_CC_CLASSIFICATION
Cash Drawer Reconciliation Adjustments	Reconciliation Cash Account	Transaction Type	Lookup Codes for ORA_PSC_CC_CASH_TRANS_TYPE
	Reconciliation Overage Gain Account	Transaction Type	Lookup Codes for ORA_PSC_CC_CASH_TRANS_TYPE
	Reconciliation Overage Payable Account	Transaction Type	Lookup Codes for ORA_PSC_CC_CASH_TRANS_TYPE
	Reconciliation Cash Account	Transaction Type	Lookup Codes for ORA_PSC_CC_CASH_TRANS_TYPE
	Reconciliation Shortage Loss Account	Transaction Type	Lookup Codes for ORA_PSC_CC_CASH_TRANS_TYPE
	Reconciliation Shortage Receivable Account	Transaction Type	Lookup Codes for ORA_PSC_CC_CASH_TRANS_TYPE

Note the following if you reinstate fees (reverse payments) for returned checks.

If your agency allows refunds of personal check payments before the check clears the bank, here's what will happen. If you refund a check that represented an overpayment before reversing that payment, an on-account debit for the amount refunded will remain after the reversal and a new Refund Fee Item will be created to recover that amount. You should create a mapping set for the Refund Fee Item to credit the on-account rather than revenue when it is paid. The Refund Fee Item is specified on the Agency Payment Options page.

For more information, see Setting Up Agency Payment Options.