Glossary · Austria and Germany
Settlement of a claim
Settlement of a claim means resolving an outstanding obligation, often through payment. Whether a receipt clears the whole balance or individual components depends on amount, allocation and applicable rules. A closed case is not necessarily fully paid.
Distinguish the concepts
Principal, interest and costs may be separate items. Receiving the original invoice amount does not always clear every position. A settlement agreement, credit note or release can also affect the balance. Accounting and case systems should retain the closing reason rather than treating payment and discontinuation as equivalent.
Jurisdiction and scope
Austria and Germany have their own allocation rules. Effective agreements and settlement between client and provider also matter. incaseof.law’s terms explain contractual allocation and reporting duties. A bank receipt therefore should not automatically be equated with the amount payable to the client.
Illustrative business example
After handover, a customer pays EUR 1,000 directly to the business. It reports amount, date and reference and reconciles the case statement. Actual allocation determines whether principal, interest or costs remain. Accounts and case status are then updated consistently.
Common questions
Does closed always mean paid?
No. The reason must distinguish full payment, return, compromise or discontinuation.
Can I retain a direct payment and delete the case?
Consider the instruction, assignment and reporting duties. Deletion does not replace proper notification and settlement.
How should partial receipts be recorded?
Keep amount, date, recipient, reference and allocation so the balance remains traceable across systems.
Related topics
Sources and basis
- Deutschland: BGB 362
- Deutschland: BGB 366
- Deutschland: BGB 367
- Österreich: Zahlungsanrechnung
- Engagement, services, remuneration and cooperation: incaseof.law terms
Content reviewed on 23 September 2026. Procedural information and our contractual terms are separate foundations. The individual case remains decisive.
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