NRV Lower Of Cost NRV Inventory Test Tool

Audit itemwise cost versus caller selling-price-less-completion/selling-cost NRV, retaining negative unit NRV but flooring asset carrying value at zero; any additional disposal obligation is outside this inventory-only model.

Description

Net realizable value subtracts completion and selling costs from expected selling price.

Net realizable value subtracts completion and selling costs from expected selling price. Inventory carrying value uses lower cost or NRV with a zero floor.^[1]

The returned values include Sku nrv per unit minor, Sku carrying values minor, Total inventory write down minor. The How section below explains the calculation, input rules and interpretation.

When to use NRV Lower Of Cost NRV Inventory Test Tool

Use NRV Lower Of Cost NRV Inventory Test Tool when you need to evaluate the supplied records under the calculation and evidence rules below. Negative NRV remains visible, but additional disposal obligations and valuation evidence are outside this inventory-only model.

Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.

How to use NRV Lower Of Cost NRV Inventory Test Tool and understand its results

Gather the source balances and explicit accounting policy. Monetary inputs use integer minor units in one currency; for a currency with 100 minor units per major unit, 12345 represents 123.45. One basis point is 0.01 percentage points; 10000 basis points is 100%. Dates and posting signs follow the individual rules below.
Enter skuUnits, skuCostPerUnitMinor, skuSellingPricePerUnitMinor, skuCompletionAndSellingCostPerUnitMinor using the field table and calculation rules, then run the tool.
Read skuNrvPerUnitMinor, skuCarryingValuesMinor, totalInventoryWriteDownMinor. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
skuUnits	Sku units	list of number	Required
skuCostPerUnitMinor	Sku cost per unit minor	list of number	Required
skuSellingPricePerUnitMinor	Sku selling price per unit minor	list of number	Required
skuCompletionAndSellingCostPerUnitMinor	Sku completion and selling cost per unit minor	list of number	Required

Enter aligned nonempty integer units 0–1000000 and nonnegative safe-integer per-unit money lists. Return signed unit NRV, nonnegative carrying values and total cost-minus-carrying write-down with safe products/sums.

NRV=price−completionAndSelling; carrying=units×max(0,min(cost,NRV))

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
skuNrvPerUnitMinor	Sku nrv per unit minor	list of number
skuCarryingValuesMinor	Sku carrying values minor	list of number
totalInventoryWriteDownMinor	Total inventory write down minor	number

json

{
  "input": {
    "skuUnits": [
      2,
      3
    ],
    "skuCostPerUnitMinor": [
      10,
      20
    ],
    "skuSellingPricePerUnitMinor": [
      12,
      18
    ],
    "skuCompletionAndSellingCostPerUnitMinor": [
      3,
      3
    ]
  },
  "output": {
    "skuNrvPerUnitMinor": [
      9,
      15
    ],
    "skuCarryingValuesMinor": [
      18,
      45
    ],
    "totalInventoryWriteDownMinor": 17
  }
}

Limitations and assumptions

Negative NRV remains visible, but additional disposal obligations and valuation evidence are outside this inventory-only model.

Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Numeric lists are limited to 10,000 entries and string lists to 128 entries of at most 128 characters. Follow any smaller limits above. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Lower Of Cost Or Market Write Down Checker: This lower-of-cost-or-market scenario constrains replacement cost between an NRV ceiling and an NRV-minus-normal-profit floor. It differs from a direct cost-versus-NRV test. For a complementary task, use Obsolete Inventory Reserve Percent Lookup: Obsolescence reserve rates need a versioned caller policy. Inclusive aging bands must include an explicit overflow rate.

References

NRV Lower Of Cost NRV Inventory Test Tool — tool.io

Similar or alternative tools

Lower Of Cost Or Market Write Down Checker
This lower-of-cost-or-market scenario constrains replacement cost between an NRV ceiling and an NRV-minus-normal-profit floor. It differs from a direct cost-versus-NRV test.
Obsolete Inventory Reserve Percent Lookup
Obsolescence reserve rates need a versioned caller policy. Inclusive aging bands must include an explicit overflow rate.