Depreciation in Xactimate online
Updated
by
Jill Bowers
Depreciation is a popular accounting method that adjusts the value of physical assets across their life expectancy. Depreciation allows for a reduction of value based on the item’s category, age, condition, and usage.
You can set depreciation in two different locations in Xactimate online.
Preferences
Settings in Preferences apply to all projects in the specified profile.
- Select Preferences on the left-hand side of the Projects page.
- Select your profile from the Select profile drop-down menu.
- Select Recoverable or Non-recoverable in the Depreciation card.
- Recoverable depreciation: Recoverable depreciation applies to the initial project or settlement of an Actual Cash Value (ACV) policy. Depreciation may be recovered after certain requirements in a replacement cost coverage policy are met.
- Non-recoverable depreciation: Non-recoverable depreciation applies to the initial project or settlement of an ACV policy. However, depreciation cannot be recovered.
- Choose how to measure depreciation by selecting the Age/Condition, Percent (%), or Amount (Amt) button.
Parameters
Settings in Parameters apply to individual projects.
- Open a project.
- Navigate to Claim Info > Parameters.
- Select the desired type(s) of depreciation.
- Depreciate material: This allows depreciation to be applied to physical items, such as cabinets, carpet, and other such items.
- Depreciate non-material: If this option is selected, depreciation can be applied to non-labor items, not including materials. Here are some examples:
- Depreciate removal: When this option is selected, depreciation can be applied to removal components.
- Depreciate overhead and profit: If this option is selected, depreciation can be applied to overhead and profit.
- Depreciate sales tax: If this option is selected, depreciation can be applied to sales tax.
Note: Not all insurance carriers and regulatory agencies allow for every type of depreciation.