Financial and Management accounting at Nestle

The financial accounting process at Nestle takes into account the companies accounting both at the office and at the factory. The various company balance sheets and its integration with the company’s financial reports are integrated. The various purposes for doing so are the integration of company’s financial base to fetch the status of the company. It is very crucial from the audit point of view and requires a strict control towards financial record maintenance and its archive it for 50 years.

This process not only serves a greater good but also defines its purpose for better confidence and corporate governance on the whole. The primary activity is the creation, maintenance and sharing of ledger accounts. The various sales orders, assets and transactions are managed quite efficiently at Nestle which ensures various cost techniques had it been managed using some other software where integration was not possible. SAP has integrated it as master and child processes at all its 80 countries for fetching the right degree of handling and processing.

The management of depreciation costs at all its centers also governs the right rule for maintaining the SAP system.

At the management costing side of SAP, Nestle has now identifies all its cost elements and have strategized accordingly to handle the cost elements, activity allocations and cost associated with it. The SAP also imbibes the overhead costs and personnel costs related to materials movements and cost of allocation of personnel for tasks. This might seem easy at one location, however when the company operations are mammoth, SAP provides just the right amount of integration for all its locations to reduce the cost of effort and time in finishing an activity.

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