Net Realizable Value (NRV) is calculated using the formula: NRV = Estimated Selling Price – Estimated Costs to Sell. This value represents the expected recovery from an asset, considering any costs associated with selling it. NRV is crucial for determining the fair value of inventory and ensuring that assets are not overstated on financial statements.
Reimagine Your Order-To-Cash with AI
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Enterprise Receivables Management System to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
