Today is indeed a busy day for me. I spent the whole day at the office doing my reports for the field work last week. To top that I also helped one of our salesman and computed his commission add back. In accounting that is what they call work back. The salesman I helped was recently charged with a deduction to his commission/cash bond deposit. The amount involved is very material and it has to be corrected and added back to his cash bond deposit.
Our company salesmen are required to have a cash bond. This is because the company is very conservative in a way that they anticipate that the salesman that they hired will have some problem in his accounts. To protect the company's interest, they decided that all salesman must have a cash bond deposit.
Cash bond deposit in a way is also good. It is because it is also a form of savings (forced savings). As the amount of the cash bond grows it earns interest, just like banks and other investment portfolios. It is just like having a time deposit since the interest rate of our company's cash bond is based on the current banking rate.
I am not a salesman but I do have a cash bond also. It is now earning interest since it has already reached the 10,ooo mark. Cash bond cannot be withdrawn from the company unless you resign or with the approval of the direct superior whom you are under with. My cash bond will only be released when I would decide to leave.
Our company salesmen are required to have a cash bond. This is because the company is very conservative in a way that they anticipate that the salesman that they hired will have some problem in his accounts. To protect the company's interest, they decided that all salesman must have a cash bond deposit.
Cash bond deposit in a way is also good. It is because it is also a form of savings (forced savings). As the amount of the cash bond grows it earns interest, just like banks and other investment portfolios. It is just like having a time deposit since the interest rate of our company's cash bond is based on the current banking rate.
I am not a salesman but I do have a cash bond also. It is now earning interest since it has already reached the 10,ooo mark. Cash bond cannot be withdrawn from the company unless you resign or with the approval of the direct superior whom you are under with. My cash bond will only be released when I would decide to leave.
