Practical applications of Mission-Type Economic Planning (MTEP) will include the possibility for the economic activities of Enterprises to experience a Transvaluation of All Arbeit (TIA). The TIA must be issued as a majority consensus within the affected Enterprises. The Self leading that consensus could be the Administrator or the Delegate. Often, it will have to be the Delegate, but it is also possible for them to be the Administrator or the Property Owner of the Enterprise. In either case, they will be the ones to advocate for the TIA, whereas the Economic Planner and their retinue of Accountants are the ones to oppose the decision. Once the TIA is issued to the State Commissariats, one of two decisions can be imposed on the affected Enterprise:  

• Raise QW and Lower QM: To revalue Arbeit is to increase the QW value relative to the QM value. With more valuable Actual Arbeit, the subsequent conversion within the LER Process is tantamount to gaining a larger return of Actual Geld.
• Lower QW and Raise QM: To devalue Arbeit is to decrease the QW value relative to the QM value. In the case of the opposite, less valuable Actual Arbeit will yield a smaller return of Actual Geld upon conversion within the LER Process.

If the State Commissariat presiding over the TIA is convinced that the Enterprise deserves, a week-long “Probation Period” is instituted. During this period, a State Commissar will be on site to monitor the economic activities of the Enterprise, ensuring that everyone is enforcing the changes. A State Commissar needs to be there in person so they can relay the results to the Central Planners at the Ministry of Economics. If everyone succeeds in upholding the TIA, the changes are made official at the beginning of the following workweek. If everyone fails, then the TIA is revoked and the original Quality of Arbeit and Quality of Geld amounts are restored.

The Economic Planner will be asked by the State Commissar to uphold the TIA, expecting their retinue of Accountants and the Delegate of their Enterprise to enforce them. Acting on behalf of the Economic Planner, the Accountants assigned to them are tasked with recording the changes to the Quality of Arbeit and the Quality of Geld in the SSR. Trial Balancing by means of the Convertibility Rate are to be implemented, the final values reflected in the Financial Ledger’s Balance Sheet, Income Statement and Workflow Statement.

We have briefly explored how they can be recorded in the preceding Entry on Trial Balancing. What will be addressed here is how they appear in the Financial Ledger under their associated account. The account in question is known as the “Accounts Transvaluable.” The Accounts Transvaluable denotes how much was lost or gained from the TIA. To illustrate how it comes into play, let’s revisit the example involving the Biehr Apothecary Guild.

In the previous Entry, it was stated that the Quality of Arbeit had decreased from 250 GDM to 200 GDM due to a Transvaluation of 50 GDM. The Quality of Geld was diminished from 600 GDM to 470 GDM to account for the effects of Currency Depreciation. The remaining 470 GDM was State Revenue because those amounts pertained to the LER and LERE Processes rather than any transfers of existing Actual Geld from transactional sales.

Given that significant fact, what would happen if the Biehr Apothecary Guild did in fact receive Actual Geld from transactional sales? What if its Quality of Arbeit and Quality of Geld increased beyond those amounts? That is where the Accounts Transvaluable comes into play. After all, while the TIA’s Probation Period is in effect, the Enterprise is still being operated as normal.

Imagine for a moment that Biehr Apothecary Guild received 600 GDM from transactional sales, except the Quality of Arbeit and Quality of Geld has remained the same in the three weeks since the Probation Period was imposed. When the Probation Period ends, the State Commissariat is already gone from the Enterprise’s local branches. The table below states that the Council State had a State Revenue of 1,070 GDM in the State Fund registered for Biehr Apothecary Guild. Of that amount, 470 GDM came from Accounts Transvaluable, the remaining 600 GDM from the transactional sales. That 600 GDM stays with the Enterprise because it was existing Actual Geld received from transactional sales, hence the invocation of Accounts Receivable.   

Furthermore, it is perhaps significant that the Enterprise supplying Biehr Apothecary Guild with pharmaceuticals is the Kroll Pharmaceutical Concern. Kroll Pharmaceuticals has production processes pertaining to the creation of various medication products that are transported to the Tournament and distributed to smaller Social Enterprises like Biehr Apothecary Guild. More importantly, the two Enterprises are relying on two different types of Accounting Techniques for their Accounting Ledgers. Kroll Pharmaceuticals uses the NSBM Technique, while Biehr Apothecary relies on the LEBM Technique. Since both Accounting Techniques are outside the focus of this Entry, all we need to know is that Kroll Pharmaceuticals in the best possible to be accepting an Invoice from Biehr Apothecary.

Kroll Pharmaceuticals yielded a Quality of Arbeit of 350 GDM and a Quality of Geld of 700 GDM from its overall production processes. Of those amounts, 180 GDM came from fulling the Invoice from Biehr Apothecary. It should also be noted that Biehr Apothecary owes 210 GDM from not paying Kroll Pharmaceuticals for a previous Invoice from three months ago. In fact, it can be argued that this missed Invoice payment was the catalyst behind the TIA.   

It is because Biehr Apothecary owes Actual Geld to Kroll Pharmaceuticals that the latter has an “Accounts Reconcilable” for any unpaid Actual Geld. It comes into effect whenever an Enterprise does not receive the Actual Geld that it is supposed to be receiving from anyone, including the Council State in the case of Actual Geld allocated from the State Budget to the State Fund of the affected Enterprise. The Command Responsibility of paying the Accounts Reconcilable goes to whoever issued the Invoice or whoever owes Actual Geld. If they cannot pay, then it counts as a State Expense, which the Council State may either draw from the State Fund or its own State Budget. Only when the Enterprise’s State Fund is empty does the Council State begin drawing Actual Geld from its own State Budget.

Going back to the Invoice, Biehr Apothecary owes Kroll Pharmaceuticals 390 GDM. 210 GDM came from the Invoice issued three months ago, the 180 GDM from the latest one. Below are two tables, one for Biehr Apothecary and Kroll Pharmaceuticals. Notice how the Accounts Receivable of Kroll Pharmaceuticals is correlated to the Accounts Payable of Biehr Apothecary. Kroll Pharmaceuticals received a 390 GDM Payment from Biehr Apothecary that effectively paid off the Accounts Reconcilable, which includes both the latest Invoice and the one from three months ago. Instead of reporting a State Revenue of “1,070 GDM” and an Accounts Receivable of “600 GDM,” the Accountants of that Enterprise reported a State Revenue of “880 GDM” and an Accounts Receivable of “210 GDM.”

As one may surmise from those tables, the Accounts Receivable and Accounts Payable will continue to exist insofar as they are now recording the movements of existing Actual Geld. The same can be said about Inventory. This raises the important issue of how aspects of the Worksheet of Sociable Accounts fit neatly into the Balance Sheet, Income Statement, and Workflow Statement. In the next Entry, we will discover how they are recorded.

Categories: Compendium, Work-Standard Accounting Practices

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