The Life-Energization Basis Method (LEBM) Technique can perform two tasks under Command-Obedience Account Bookkeeping that are done in conjunction with Mission-Type Economic Planning (MTEP). The first and most obvious pertains to the Life-Energization Reciprocity (LER) Process, which is to record the contributions of Actual Arbeit to the Life-Energy Reserve and track their subsequent conversions into new Actual Geld. The other is to track the transferring of existing Actual Geld between accounts as part of a transactional sale for a finished good or rendered service. The former should already be familiar to the Reader at this point: “Arbeit-into-Geld”; the other, “Geld-into-Arbeit,” happens to be the latter.

Relying on information derived from a Bookkeeper’s Statement of Self-Reciprocity (SSR), the Accountant will take the Values listed in the SSR, make any necessary corrections through Trial Balancing with the Convertibility Rate (CR), and provide the final amounts to the Economic Planner in the Financial Ledger. At the end of the workweek, usually a Friday or a Saturday, the Accountant will present the Financial Ledger of a given Enterprise to the Economic Planner and allow them to deposit the financial statements for the workweek at the State Bank. The State Bank will relay the information to the Central Planners in the Ministry of Economics. The Central Planners of the Ministry of Economics will transmit them to the Central Bankers at the Central Bank, which is owned and operated by the Ministry of Finance. Based on amounts provided, the Central Bank will use that new information on the Total Productive Potential (TPP) to control how much Sociable Currency can be put into circulation with Requisitionary Productive Forces (RPF).   

Note that not every entry created using LEBM Technique is going to pertain to the LER Process, the conversion of Actual Arbeit into Actual Geld at the Life-Energy Reserve. Every production process, not to mention the subsequent transportation and distribution at the Tournament, is going to involve converting Actual Arbeit into Actual Geld. For transactional sales, an Accountant will be expected to make two pairs of corresponding entries:

1. An entry listing Arbeit Contributable and Geld Convertible. The Arbeit Contributable describes how much Arbeit was contributed from the transactional sale. After it gets converted into Actual Geld, the Geld Convertible will be resulting final amount. That amount will always be added toward the LER Account of the Worksheet of Sociable Accounts (WSA).
2. An entry featuring Accounts Payable and Accounts Receivable. The Accounts Receivable will tell us how much Actual Geld that an Enterprise gained from the transactional sale. The Accounts Payable lists how much Actual Geld that a Customer gave to the Enterprise as part of that same transactional sale.  

These arrangements are derived from the conclusions posited in an earlier Treatise, The Third Place (1^st Ed.). In that Treatise, the argument was that there is far more at stake within a given transactional sale than just the mere transferring of Actual Geld for finished goods or rendered services. Economic activities occurring at the Tournament are merely an extension of those conducted by Enterprises registered to specific Domains across the Work-World. It is because there are Enterprises tied to Domains tied to the Work-World that an Economic Planner can discern how much Actual Arbeit is capable of being converted into Actual Geld. An Accountant can then quantify these assertions by means of the LEBM Technique, relaying the results to the Economic Planner through the Financial Ledger.  

In the LEBM Technique, all occurrences of Arbeit-into-Geld and Geld-into-Arbeit are to be immediately recorded in the SSR as they take place. Remember, in a functioning Council Democracy, the Enterprise’s Delegate will also be playing the role of Bookkeeper for the Economic Planner and their “retinue of Accountants.” This Delegate, who is chosen by the rank-and-file Vocational Civil Servants, has a Legal Duty to document the various occurrences of Arbeit-into-Geld and Geld-into-Arbeit on the same day as they took place. For transactional sales, this means as soon as the Enterprise receives any existing Actual Geld from the Customer for the finished good or rendered service. Assuming the amounts were entered correctly into the SSR, the Accountant should have no issues with entering them into the Financial Ledger.  

Of course, any serious, practical applications of the LEBM Technique are going to entail experiencing transactional sales of varying Volumes and Frequencies. That is why the Council State is going to provide a piece of downloadable freeware for every State, Social, Student and Digital Enterprise to obtain from the National Intranet. This downloadable freeware is an accounting software program designed to allow any Enterprise within the Nation to document their economic activities for both internal and external dissemination. Ideally, under everyday applications of MTEP with the LEBM Technique, each Enterprise employing the LEBM Technique should have three copies of specific information on a particular transactional sale:

1. The finalized entries of the Financial Ledger that the Economic Planner will be reporting to Central Planners vis-à-vis the State Banks at the end of each workweek.
2. The Receipts which the Enterprise had provided to the Customer, who had purchased the finished good or rendered service with their Actual Geld. There should be no Invoices whatsoever while relying on the LEBM Technique.
3. An internal copy of the Financial Ledger recorded by the Accountant, which was derived from the Delegate’s original SSRs and whatever adjustments the Accountant had made prior to presenting the finalized entries to the Economic Planner.

The general idea here is to allow the Council State to have two sets of financial statements to compare against. Since we cannot always assume that the Customer is going to keep their Receipts, any burdens of proof will naturally fall on the Accountant. If the Central Planners or, more specifically, the State Commissariats of Wages and Prices have reasons to suspect that the financial statements from an Enterprise are too inconsistent or unusual, an assigned Inspector will be expected to pay a sudden visit or two to that Enterprise. What the Inspector is going to look for is the original Financial Ledger kept by the Accountant.

Compared to the NSBM Technique, the subject of the next Entry, the LEBM Technique is easy to use and straightforward enough for anyone with a basic grasp on arithmetic. Its simplicity in terms of what it is meant to be used for will make it the preferred choice of Accountants operating alongside Economic Planner within Social Enterprises and Student Enterprises. There is a significant deemphasis on Invoices as well as little need to account for the Life-Energization Reciprocal Electrification (LERE) Process nor any potential NSFIs from the Kontore. Thus, smaller Enterprises within the VCS Planned/Command Economy, such as Public-Directed Enterprises (PDEs) or Public-Owned Enterprises (POEs), will tend to gravitate toward the LEBM Technique as opposed to the NSBM Technique.  

However, it should be noted that there are some limitations associated with relying on the LEBM Technique. There is the obvious procedure of always recording any Revenues and Expenses as soon as there are signs of an Arbeit-into-Geld and likewise for Geld-into-Arbeit. Those Revenues and Expenses cannot be recorded before they occur, which can oftentimes be the case with the NSBM Technique. The LEBM Technique is ill-suited for accounting any contributions of Digital Arbeit and Geld from the National Intranet or Military Arbeit and Geld from the Military-Industrial Complex. Some of these complications tend to occur if somebody decides to send an Invoice to an Enterprise relying on the LEBM Technique.

Any usage of LEBM Technique will restrict an Enterprise from interacting with the Kontore. Since most NSFIs tend to base their Values of Arbeit and Prices for Geld based on economic activities that have yet to materialize, an Accountant will be stuck waiting for them to happen. It also does not help that Enterprises issuing NSFIs at the Kontore tend to give their Economic Planners larger roles in the everyday affairs of their assigned Enterprises than the “retinues of Accountants” under their Command Responsibility.   

Before moving on to discussions of the NSBM Technique, I will close the Entry by including the following table. It is a description of the preferred Accounting Techniques for the various Enterprises described in an earlier Entry, “Receipts and Invoices in Command-Obedience Account Bookkeeping.” All but six of the Enterprises listed below are more likely to use LEBM Technique within their economic activities. The rest of the Enterprises, which happen to be the vast majority, are going to rely on the NSBM Technique for all their economic activities. It is probably not a coincidence that the preferred Accounting Technique happens to be determined by everything discussed so far and narrowed down by process of elimination.

Categories: Compendium, Work-Standard Accounting Practices

Tags: Accounting, Bookkeeping, Economics, Finance, Philosophy, Politics, Psychology, Socialist Finance, Taxes, Third Place, Work-Standard, Work-Standard Accounting Practices