Training Bond
A training bond is the promise a man gives when the company pays for an expensive course: stay this many months, or pay back the part you did not serve. This screen records the promise and works out what is owed today, and the final settlement collects it.
What it is for
A client sends a man on a 300,000 rupee course abroad against a two year bond. Eight months later he resigns. Without this screen there is nowhere the bond is written down and nothing works out what is owed, so the recovery is argued rather than calculated.
The arithmetic is simple and the screen does all of it. You type the amount, the number of months and the start date. It works out the end date, how many months have been served so far, how many are unserved, and the recoverable amount as the bond amount spread over the months, times the months not yet served. Sixteen of twenty-four months unserved on a 300,000 rupee bond is 200,000 rupees. None of those four figures can be typed, on purpose, because a typed recovery figure is a dispute waiting to happen.
The figures are kept current without anybody opening the screen. Overnight, every live bond has its served and unserved months and its recoverable amount recalculated against today's date. When a bond has been fully served, that same overnight run releases it by itself and the recoverable amount goes to zero. A man who stayed the full two years owes nothing and nobody has to remember to say so.
Is the money actually recovered when he leaves
Yes, and this is the part worth being precise about with a client.
When Final Settlement is prepared for a leaver, it adds up every bond of his that is not released, has not already been attached to a settlement, and still has a recoverable amount. That total appears on the settlement as a deduction line called Unserved training bond, so the man's last payment is reduced by it without anybody working the figure out by hand. A bond already released, or already attached to an earlier settlement, is finished and is not collected twice.
What is not automatic is closing the bond out afterwards. Once the settlement has recovered the money, somebody has to come back to this screen, tick Released and name the settlement that did it. The screen will not let you release a bond with money still recoverable unless you name that settlement, which is the control that stops a bond being quietly written off. So the recovery is computed and collected for you. The housekeeping is one manual step per bond, done once, after the settlement.
The company's intention about which courses carry a bond lives on the course, in Bond Threshold and Bond (Months). Those two fields are a note to the HR officer and nothing more. No bond document is created from them, so every bond on this screen is raised by hand.
Every field, in plain words
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Transaction | The document number. | Fills itself. Leave it. | Required, and must be unique. |
| Transaction Date | The date the bond document was raised. | 5 January 2026 | Required. |
| Employee | Who signed the bond. | Imran Qureshi | Required. |
| Employee Name | His name. | Fills itself from the employee. Leave it. | |
| Course | The course the bond was taken for. | Advanced Maintenance Training, Germany | Required. |
| Course Name | The course name. | Fills itself from the course. Leave it. | |
| Agreement | A reference to the signed agreement. | The reference number of the signed bond paper | The screen stores whatever you type. Nothing in the module reads it, so agree the convention with the client, or keep the signed paper as an attachment instead. |
| Bond Amount | The sum the bond is for, which is normally the cost of the course. | 300000 | Required, and must be more than zero. In rupees. |
| Bond (Months) | How long he has to stay. | 24 | Required, and must be at least 1. Everything else is worked out from this and the amount. |
| Bond Start Date | The date the bond period starts, normally the date he returns from the course. | 1 February 2026 | Required. Cannot be earlier than the date he acknowledged the bond. |
| Bond End Date | The last day of the bond period. | Fills itself. Leave it. | The start date plus the months, less a day. You cannot type it, because a typed end date that disagreed with the months would make the recovery depend on which figure the reader believed. |
| Acknowledged by Employee | Whether he has signed. | Tick it once the signed paper is in | If you tick it, the date below becomes required. |
| Acknowledged On | The date he signed. | 20 January 2026 | Required once the tick is on. Must not be later than the bond start date. If you clear the tick, clear this date too. |
| Months Served | How much of the bond he has served so far. | Fills itself. Leave it. | Counted to today while the bond runs, and frozen at the full term once the bond is over. Recalculated overnight. |
| Months Unserved | How much of the bond is left. | Fills itself. Leave it. | The months less the months served. |
| Recoverable Amount | What he owes today if he leaves. | Fills itself. Leave it. | The bond amount spread over the months, times the unserved months. Zero on a released bond. This is the figure the final settlement collects. |
| Released | The bond is finished and nothing is owed. | Leave it unticked until the bond is served out or recovered | Ticked for you overnight once the bond is fully served. Tick it yourself only when a settlement has recovered the money, and name that settlement. |
| Settlement | The final settlement that recovered the bond. | The leaver's settlement document | Required before you can tick Released while there is still an amount recoverable. |
| Remarks | Anything about the bond. | Course fee 280,000 plus 20,000 travel. |
How to configure it
- Get the signed bond paper from the employee before you raise the document, because the acknowledged date has to be on or before the bond start date.
- Open Training Bond. Transaction Date today. Employee Imran Qureshi. Course Advanced Maintenance Training, Germany.
- Bond Amount 300000. Bond (Months) 24. Bond Start Date 1 February 2026, which is the day he returns.
- Tick Acknowledged by Employee and set Acknowledged On to 20 January 2026, the date he signed.
- Save. The end date, the months served and unserved, and the recoverable amount are all worked out for you. On the day it is raised the recoverable amount is the full 300,000 rupees.
- Leave it alone. The figures are brought up to date overnight, and the bond releases itself once the twenty-four months are up.
- If the man resigns first, prepare his Final Settlement as normal. The unserved bond comes onto it as a deduction by itself.
- After the settlement is done, come back here, name the settlement in the Settlement field and tick Released. Save.
Scenarios
We sent a man abroad on a 300,000 rupee course and he resigned after eight months
Raise the bond when he goes: 300,000 rupees, 24 months, starting the day he comes back. When he resigns in month eight, the screen already shows 8 months served, 16 unserved and 200,000 rupees recoverable, and the overnight run has kept that figure right without anybody opening the document. Prepare his final settlement and the 200,000 rupees appears on it as Unserved training bond, reducing what he is paid. Then come back here, name that settlement and tick Released.
He served the full two years
Do nothing. On the night the bond completes, the overnight run marks it released and the recoverable amount becomes zero. If he leaves a month later, his settlement finds no recoverable bond, which is the right answer.
He resigned, we recovered the money, and now the bond still shows as live
That is the one manual step. Tick Released and name the settlement that recovered it. Until you do, the bond looks collectable, although the settlement it is already attached to keeps it from being collected a second time.
Management agreed to waive the bond because he was made redundant
Tick Released and name the settlement, with the reason in Remarks. The screen will not let you release a bond with money recoverable without a settlement named, which is deliberate: a waiver has to be traceable to a document somebody signed off. If there is genuinely no settlement, the waiver is a decision the client should record in writing before you change anything here.
Our policy is a bond on any course over 150,000 rupees
Record that on each Training Course, in Bond Threshold and Bond (Months), so the policy lives with the course. Then raise a bond here for every man you send. Nothing creates the bond from the course, so this is a procedure the HR officer has to follow, and it belongs in the client's own checklist for an expensive course.
What it is connected to
- The employee's record and the Training Course must exist first.
- Training Course records the bond threshold and the usual bond length as policy. It does not create the bond.
- Final Settlement collects the unserved amount of every unreleased bond that is not already attached to a settlement, as a deduction line.
- The served months, unserved months and recoverable amount are recalculated overnight, and a fully served bond is released then.
If something looks wrong
- "It says to enter the bond amount" - the amount is zero or blank. A bond with no amount recovers nothing.
- "It says bond months must be at least one" - the months are zero. Everything is worked out from the months, so there is no bond without them.
- "It says the bond cannot start before it was acknowledged" - the acknowledged date is later than the bond start date. Check which date is really the signing date.
- "It says to mark the bond acknowledged or clear the date" - there is a date in Acknowledged On without the tick. The two go together.
- "It says to name the final settlement before releasing it" - you are releasing a bond that still has money recoverable. Name the settlement that collected it.
- "The recoverable amount is not what I expected" - it is the amount spread evenly over the months and multiplied by the unserved months. Check the bond months and the start date, and remember a part month is not counted as served until the same day of the month comes round.
- "The bond did not appear on the settlement" - it is already released, it already names a settlement, or its recoverable amount is zero. Any one of the three means it is finished.
- "The figures are a month out of date" - they are brought up to date overnight. Saving the document recalculates them immediately.