17 June 2025
Net Realizable Value on Seasonal Leftovers
Practical NRV checks when festival or weather-driven stock sits past its selling window.
Seasonal leftovers—holiday packaging, weather gear, promotional kits—often linger after the selling window closes. Carrying them at historical cost can overstate inventory if sell-through depends on deep discounts.
Net realizable value starts with what you can still sell for, less finishing and selling costs. Recent clearance invoices, broker quotes, or scrap prices all count as evidence. Optimism without a buyer conversation is not evidence.
Walk the floor. Moisture, crushed cartons, and faded labels change the story that a spreadsheet tells. Photograph damaged lots and attach the images to the reserve file.
Present write-down candidates to management with a clear “keep / discount / scrap” recommendation. An inventory valuation audit later in the year will move faster when those decisions are already documented.