Declaring add-on parameters in X1

Updated by Heather Jones

In the Parameters tab, you can declare and adjust any extras that could affect the estimate, such as depreciation, overhead and profit, market conditions, and advance payments.

  1. Open an estimate.
  2. Navigate to Claim Info > Parameters.
  3. In the Add-ons, Depreciation Options, and Overhead and Profit (O&P) sections, you can enable or disable each of the following:

Add Ons

Default Tags

Select Show tags to enable Default Tags.

Select Default Tags to open the Tags screen where you can attach additional information to a line item (such as a date or vendor number).

You can view item tags on the right side of the Quick Entry view of the line item. Some tags, such as Brand, must be added individually, which you can do here.

Distribute Market Conditions

Typically, when a line item price is changed due to market conditions, users add it as a lump sum. Select Distribute Market Conditions to distribute the market conditions value across Labor, Equipment, and Material costs.

Note: To see this applied, select the unit price for an individual item and then the i button next to the Replace Price field. This opens the Item Activity Information screen. This displays the breakdown of the item cost into the different categories (labor, equipment, materials). When Distribute Market Conditions is selected, it distributes any manual price changes across these categories.

Include Advance Payments

Select Include advance payments to enable the recording of any advanced payment activity.

Select Advance Payments to add or modify payments that have already been made to the customer.

Salvage/Restored

Select Salvage/Restored to change or view the default salvage and restoration calculations (which can be based on a lump sum or line item sum).

Labor Burden

Select Labor Burden to view the labor burden factors for your estimate.

Sales Tax

Select Sales Tax to add taxes that are not included in your price list or to modify taxes that are already included.

Additional Charges

Select Additional charges to add a charge that is not included elsewhere in the estimate (e.g., a permit, additional tax, etc.).

Depreciation Options

In the Depreciation Options section, you can modify how depreciation applies to your project, but you see the settings applied on an item-by-item basis. Some states do not allow depreciation on certain items, so Xactimate includes the option to turn depreciation off as needed.

Select the appropriate options to add depreciation to material, non-material, removal, overhead and profit, and sales tax. Items include costs such as material, non-material (labor, equipment, etc), removal cost, sales tax, and overhead and profit. Select the appropriate options to determine what amount of each is depreciated in line items that include that option.

You can also modify the maximum allowed depreciation, whether or not it is recoverable (i.e., whether the company will only pay the item’s cash value or the full replacement cost), and by what factor depreciation is calculated.

Overhead and Profit (O&P)

Overhead represents the costs associated with the work done, and profit represents the price markup that contractors and others add on top of material costs so they can still pay for the work done.

In the Overhead and Profit (O&P) section, you can modify what percentages of overhead and profit are added to the estimate. If the Cumulative Overhead and Profit checkbox is selected, overhead is calculated on the estimate total and profit is calculated on the total plus the overhead. If it is not turned on, overhead and profit are both calculated from the estimate total.

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