Net Realisable Value (NRV) is a business rule used to evaluate the estimated selling price of an asset or inventory. It is based on how much money can be recovered through the sale of an asset, taking into account all costs associated with it such as storage, transport and other expenses. By calculating the NRV of your inventory, you can determine how much of it can be sold at the current market value and gain important insights into stocking levels, pricing policies and forecast demand. With the Net Realisable Value Rule, business owners can make quick decisions on when it’s prudent to hold onto inventory or sell off excess stock before it becomes obsolete.