What is Net Realisable Value?
Net realisable value, usually written NRV, is the amount you expect to end up with for an export once any agreed reductions are taken off the invoice value. On the EDF, Part 2B has a column for NRV next to the invoice amount and currency, so every invoice row carries both the gross amount and the net figure you expect to realise.
Why it matters for exporters
The EDF does not spell out a formula for NRV, and practice can vary between banks. The general idea is that if the invoice value and the amount you will really receive differ for a known reason, such as an agent's commission or a discount built into the contract, NRV shows the lower figure. Where there is no such deduction, NRV is typically the same as the invoice amount. How to treat foreign bank charges deducted in transit is a common question; ask your AD bank how it wants them reflected.
Getting NRV right helps matching later. If you declare a gross figure but the money that arrives is lower for reasons you already knew, the bank may see a short realisation and ask questions. Our explainer on calculating NRV goes deeper, and the EDF form generator has a field for it on each row.
Example
Spark Digital Pvt Ltd invoices a UK client GBP 6,000. The contract gives a referral agent 5 percent, paid out of the client's remittance. Spark's Part 2B row shows amount GBP 6,000 and NRV GBP 5,700. A second invoice of GBP 2,000 with no deduction shows NRV GBP 2,000.
Common confusion
NRV in the EDF is not the accounting term used for valuing stock under accounting standards. Same words, different context. Here it simply means the export value you expect to realise.