To calculate the net realizable value (NRV) of receivables, start by determining the total accounts receivable amount and then subtract any estimated uncollectible accounts, which can be assessed using historical data or industry standards. This gives you the NRV, reflecting the amount you expect to collect. Regularly reviewing and updating these estimates is essential to ensure accurate financial reporting.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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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 Autonomous O2C 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.
