What net book value is
Net book value is the carrying amount of a fixed asset in the accounts. It is the asset's original cost less the accumulated depreciation that has been recorded against it to date. When a piece of equipment is bought, it goes on the books at cost. As it is used, depreciation allocates that cost over the asset's useful life, and the net book value falls accordingly. At any point, net book value answers a simple question: what is this asset still worth in the accounts?
It is worth being precise about what net book value is and is not. It is an accounting figure derived from cost and depreciation, not an estimate of what the asset would sell for today. A pump that is nearly fully depreciated has a low net book value even if it still runs well, and the resale market may value it quite differently. Net book value matters for the accounts and for decisions about replacement and capital planning, which is why keeping it accurate depends on recording depreciation consistently.
Net book value in the Cohiva platform
Cohiva Control is a computerised maintenance management system for multi-site teams. It manages assets, work orders and preventive maintenance, and it includes native fixed-asset depreciation that posts to the ledger. Because the same asset record carries both its maintenance history and its depreciation, the operational and financial views stay joined rather than tracked in separate systems.
For multi-site facility and maintenance teams, that means net book value reflects the assets they actually maintain. To see how it works, explore Control.