Sales Tax, Depreciation, & Actual Cash Value

You can calculate sales tax and actual cash value after depreciation. Encircle uses industry-standard depreciation rates to calculate actual cash value.

Adding Depreciation Value

For Depreciation to work, you'll need to update the following fields:

• Item Age
• Depreciation category
• Replacement Value

1. On a claim, open the Contents tab and select Spreadsheet from the column on the left.
2. Enter an Item Age in years or months.
3. Under Depreciation, select a category from the dropdown.
4. Add a Replacement Value (RCV).
5. Encircle will calculate the Actual Cash Value (ACV) based on the item's age, depreciation category, and replacement cost.

Disabling Depreciation for a Specific Item

1. In the Spreadsheet view, click the pencil icon on the right side of the line item to edit.
2. In the "Edit Item" window, deselect the Deprecate check box.
3. Click the Save button to submit and close.

Claim Level Depreciation Settings

1. Click on the Overview tab of the claim.
2. Scroll down to the Contents section and click on the pencil icon to edit.
3. Scroll to the Contents section. 
   • Default Depreciation will apply a global depreciation percentage to all items. However, this will not override any depreciation values that have been added individually.
   • Max Depreciation sets a ceiling on the depreciation value. 
     • For example, if 50% is entered, none of the items will ever exceed 50% depreciation. 
     • If you want to prevent any depreciation at all across the claim, you can set this to 0%. 
   • Sales Tax lets you set a global tax rate for all items. This will be calculated automatically and displayed on the Edit Item screen.

Updated September 04, 2026 20:47