Net Realizable Value Defined with Examples & How to Calculate
While accounting handles the valuation, operations can report on obsolescence or damage, and sales can provide input on realistic selling prices. Companies should monitor market prices, customer demand, and industry trends regularly. This is particularly Retained Earnings on Balance Sheet important for businesses operating in fast-moving sectors such as electronics, fashion, or perishable goods. Early identification of declining selling prices can help initiate timely NRV adjustments. Deskera helps automate inventory tracking, manage receivables, and perform real-time valuation checks. What is…