Third-party money management

How Third-Party Money Management Creates Benefits

Third-party money management in Vertec as a software for law firms helps lawyers and project-oriented service providers manage entrusted funds securely, transparently, and in compliance. It creates clear responsibilities, keeps track of open balances, and enables the controlled use of third-party money to pay invoices. Controlling lists and deadlines reduce risk and simplify audits, increasing compliance, cash flow transparency, and operational efficiency.

• Quick overview of all third-party money accounts and open balances.
• Targeted user rights for secure access and clear responsibilities.
• Use third-party funds in a controlled manner to pay invoices – with automatic posting.

How third-party money management works

What is third-party money?

Third-party money is money or assets received from third parties that are not assigned to the assets of the firm or the user (e.g. purchase prices held in trust). Vertec provides structured management including accounts, accounting, controlling views and deadlines.

Prerequisites and rights

To work with the third-party money management, the user must be assigned to a suitable user group:

• User group project leader: Full access to third-party money management for projects where the user is the project leader.
• User group Third-party money: Full access to the third-party money management for all projects.

The assignment of the user rights ensures that only authorized persons create third-party money accounts, post bookings and initiate payments.

Create a third-party money account

After importing the additional feature, you can create a third-party money account on a project/case:

• Open the required case and select the entry for the third-party money account in the New menu.
• Optionally, you can enter a responsible user or a different owner of the third-party money.
• The currency corresponds to the mandate currency and is fixed.

Enter postings

On the third-party money account, you enter incoming and outgoing transactions as third-party money transactions. This allows you to document the origin, amount, date and purpose of use. All transactions are traceable on a project-related basis.

Use third-party money to pay invoices

Although the third-party money account is not linked to financial accounting, you can use amounts from it to settle Vertec invoices:

• Start the payment directly from the list (payment icon) or via actions on the third-party money account using the command “Use third-party money for invoice payment”.
• The corresponding payment will be opened automatically; the amount used will be deducted from the third-party money account.
• If the amount is fully used, the remaining amount is set to 0 and a refund date is set.

Controlling and overview

In the Mandate Management master folder, you will find the Controlling folder with an overview of all third-party money accounts. The “Open Balance” filter allows you to selectively see only accounts with open amounts. This allows you to immediately identify the need for action and keep liquidity risks under control.

Time limit management (retention period)

In the system settings, you set the maximum hold time for third-party money in days. Based on this value, Vertec automatically calculates an expiration date for each third-party money account that is visible in the lists and can be highlighted visually (e.g., red). This allows you to detect time-critical cases early and act in compliance.

Structure, automations and objects (by config set)

The import provides, among other things, the following elements to simplify the work:

• Folder structure: Mandate management with controlling > Third-party money.
• User groups for third-party money and folder access Mandate management.
• Scripts and events to support entering and using (e.g. for new accounts/postings and using for invoice payments).
• Link types to neatly link owners, postings, projects and payments.
• Custom field items and class settings for consistent data collection.