04 option 1 phase 2(doc)
Section 4: Option 1 Phase 2 Implementation (Financials) 4.1 Summary This is a proposal for Option 1 Phase 2 implementation. The purpose of this implementation is to replace Hongkong Telecom’s D&B Financials System with Oracle Financials. This document describes the scope of the implementation, Oracle applications modules to be implemented, custom extensions and interfaces identified for this implementation and training requirement. Besides, it also describes the project schedule, project organization and Hongkong Telecom’s participation for the implementation. 4.2 Scope In Option 1 Phase 2 of the project, Oracle will implement the full functionality and power of the Oracle Financials products namely Oracle General Ledger, Oracle Assets and Oracle Project Costing to complement the Phase 1 Logistics modules. During Phase 1, the “shell” Oracle General Ledger will be implemented, and the necessary interface between Oracle General Ledger and D&B General Ledger will be built. Phase 2 then will build on the existing foundation of Financials related work that will have been completed during Phase 1. At the completion of this phase, Hongkong Telecom will have a robust, flexible and fully integrated business solution. Appendix C of this proposal lists all Hongkong Telecom Business Requirements for Financials. Appendix C.1 is a statement of compliance for all financials business requirements to be included in Option 1 and Option 2. In this document, all financials requirements that are NOT underlined (unless specified) will be PMO requirements and will be included in Option 1. Those that are underlined and in italic form will be FMO requirements and will be included in Option 2. Those that are underlined but not in italic form will be out of the scope of both Option 1 and Option 2. For details about what will NOT be included in Option 1 Phase 2, please refer to Appendix C.2 Option 1 Phase 2 Exclusion List. Surrounding the core package will be custom extensions to support functionality gaps not currently supported by the application. These gaps are identified during the key user interviews and have been carefully reviewed for Phase 2 impact with a desire to minimise risk and realise a faster implementation. Custom extensions will be developed using Oracle Developer/2000. Besides, interfaces between Oracle Financials modules and Hongkong Telecom’s internal systems will be built and implemented in Phase 2. This is to replace the interfaces between the D&B Financials and Hongkong Telecom’s internal systems. 4.2.1 Included in Scope o Oracle Applications Modules - Section 4.3 o Internal Satellite Systems - Section 4.4 o Extensions - Section 4.5 o Interfaces - Section 4.6 o Data Conversion - Section 4.7 o Training - Section 4.8 o Project Milestones - Section 4.9 o Project Gantt Chart and Critical Path - Section 4.10 o Project Organization - Section 4.11 o Project Team (Oracle and HKT) Resource Estimate - Section 4.12 o Key Deliverables - Section 14.2 4.2.2 Out of Scope Areas The scope of work in this implementation proposal does not include any tasks or activities related to the following : o Data Conversion This task involves extracting the data from the in-house system and loading it into the Oracle Applications. This task will not be performed by Oracle Consulting Service (OCS). A flat file format will be supplied to HKT by the OCS project team and it will be the responsibility of HKT to supply the conversion data in the ASCII file format provided and load this into the Oracle Application. It is the responsibility of HKT to ensure the validity and accuracy of this data. o Interfaces: The provision of any interfaces into or out of the Oracle Financials that has not been included in the Interfaces Table outlined in section 4.6 of this proposal will be out of the scope of the project. Any time spent assisting HKT on the design, build or testing of these additional interfaces will be subject to change control. o End User Training: All end user training will be conducted by Hongkong Telecom. o Business Process Reengineering/Redesign: The assumption that we make in this proposal is that the business processes will not differ substantially from what was provided in the tender document provided HKT. The team members will perform analysis and understand these processes and map it to the proposed package. They will not undertake to recommend changes or undertake to change these processes. However in the course of mapping these to the package, if a modification to the process is necessary and has a positive result, the team may recommend a change. This will have to be accepted by HKT before any implementation. Again any changes proposed will have to be handled as per the Change Control Procedure. o Additional Custom Extensions: Based on our understanding of the tender a number of custom extensions have been identified (please see section 4.5 of this proposal). Any additional custom extensions will be handled as per the Change Control Procedure. o Hardware selection: Oracle proposal for the implementation of Oracle Financials does not cover the selection of a hardware vendor. Information can be provided on the certified platforms but any selection of vendors is outside of this scope. o Network or Benchmark testing: The only testing that Oracle will undertake is the unit testing of custom extension. OCS may perform ad-hoc conference room pilot testing of system functionality but this is at the discretion of the OCS project manager. 4.3 Modules The Oracle Applications modules to be implemented in Option 1 phase 2 are : o Oracle General Ledger o Oracle Assets o Oracle Project Costing 4.4 Internal Satellite Systems There is no HKT satellite system to be replaced in Option 1 Phase 2 implementation. 4.5 Extensions Following are the custom extensions identified for Option 1 Phase 2 implementation : |Requirements |Modification Description | |General Ledger | | |1.7.6.1 The projects Module |You can prepare the journals for | |will receive from the |allocating cost to projects. A | |General Ledger: |customized interface program can be | | |built to extract those journals and | | |import them into Oracle Project | | |through the standard Cost Import | | |interface in Oracle Project. | | |Special accounting rules are | | |required to be built in the | | |FlexBuilder of Oracle Project to | | |ensure the cost post from Oracle | | |Project to Oracle General Ledger | | |will have no impact (such as debit | | |and credit for the same account) for| | |this kind of imported cost. | |Fixed Assets | | |2.4.1.1 Assets can be |You can perform a stock issue (e.g. | |acquired from a number of |miscellaneous issue) in Oracle | |sources. A capital works |Inventory and use descriptive | |project on completion will |flexfield to create a flag for | |be transferred into the |identification. You can then | |assets register; an asset |manually add the record in Oracle | |may be purchased directly |Asset. If automated function is | |from a supplier; or it may |required, a customized extraction | |be transferred out of |program can be built for the | |inventory. The Fixed Assets |following action : | |application must be able to |Extract the transactions from Oracle| |accept the information |Inventory. | |passed from each of these |Load the transactions into Oracle | |sources. |Asset Mass Addition interface table.| | |The creation of the asset can then | | |be done through the standard Mass | | |Addition function provided in Oracle| | |Assets. | |2.4.8 Development and |You can create special depreciation | |Investment Allowances |rules to incorporate the allowance | |The system needs to provide |in the depreciation calculation. | |the ability to record and |For example, if the asset cost is | |track Development Allowances|$100, the initial allowance is 60% | |and Investment Allowances |and the annual allowance is 10%, the| |against individual assets. |first year depreciation is then $64.| |These allowances provide |The second year depreciation is $3.6| |additional tax deductions |etc. | |for capital expenditure, in | | |addition to that provide by |Yr 1 Yr2 Yr3 | |depreciation, in the year |Asset cost 100 36 32.4 | |certain assets are brought |I.A.(60%) 60 0 0 | |into service. These amounts |Taxable 40 36 32.4 | |should be recorded using |A.A (10%) 4 3.6 3.24 | |separate fields as outlined |NBV 36 32.4 29.,16 | |in 2.3.2. |Depr. 64 3.6 3.24 | | | | | |If more complicated calculation is | | |required, custom programs are needed| | |to be built | |2.5.3 Purging Historical |A Purging function is required to be| |Data |built. ...
04 option 1 phase 2(doc)