When the First Edition of Work-Standard Accounting Practices was completed in 2023, I devised a specific guide detailing how to determine how much Actual Arbeit and Actual Geld was being created from the Life-Energization Reciprocity (LER) and Life-Energization Reciprocal Electrification (LERE) Processes. At the time, the goal of writing the Entries for Section Three was to describe how the Accountant records the creations of Actual Arbeit and Actual Geld. The result of such prioritization was deemphasis on how the Accountant accounted for any Actual Geld gained from transactional sales. After all, whenever someone bought something from an Enterprise at the Tournament, they always gave the Enterprise Actual Geld for the finished good or rendered service. Since those transactional sales do tend to create Actual Arbeit, not just facilitate movements of existing Actual Geld, special emphasis had to be made on how new Actual Geld was created on top of the transfer of existing Actual Geld.

It was hardly an oversight on my part. One of the purposes behind writing the Second Edition was to follow up on the conclusions of the First Edition. The foundations of the LER and LERE Process had already been set up thanks to the First Edition. What the Second Edition must convey at the end of its Section Three is a demonstration of Command-Obedience Account Bookkeeping based on the preconceived conditions of “Scenario 1998.” In this two-part Entry, we will be acquiring data from the remaining Enterprises of Scenario 1998 to implement Command-Obedience Account Bookkeeping and compile the Financial Ledger. Everything discussed earlier in Section Three will be reviewed and reintroduced for the purpose of laying down the parameters of a genuine accounting system for the Work-Standard. To begin, here is a table of the Enterprises of Scenario 1998 that I have not yet used thus far:

There are three State Enterprises, two Student Enterprises, and two Digital Enterprises. Three of them create Digital Arbeit and Digital Geld, one creates Military Arbeit and Military Geld, the rest Actual Arbeit and Actual Geld. I have devised a specific context where all seven Enterprises have to interact with each other at the Tournament.      

Scenario 1998: Intercontinental Initiatives

Towards the end of the 20^th century, Europe became united by the European Federation (EF), an intergovernmental organization promoting cooperation and solidarity among European nations. The EF provides the nations of Europe with a continental platform to further their respective national interests on the world stage. Even neutral nations like Switzerland and Sweden are member-states. Leadership rotates between the French, Italians, Spanish, and Germanics. The British prefer alignments with their Commonwealth Nations (i.e. Canada, Australia, New Zealand, et al.). A demarcation lines exists on the eastern fringes of the German Reich and the Soviet Union somewhere in the middle of Eastern Europe.   

In February 1998, member-states of the EF agreed to ratify a treaty on the establishment of the “European Digital Economies,” connecting European netizens to the rest of the world on the International Internet. “Patzel & Schlegel Defense Weekly,” an online magazine publication, has reported that member-states of the European Federation are expected to spend approximately 26 billion GDM on the initiative over the next seven years. The overarching goals of the treaty are to upgrade existing digital infrastructure, create a continental Customs Union on the Digital Realm for EF member-states, and address the emerging problems of cybercrime and cyberattacks from outside the continent. As one of the prominent member-states within the EF, the German Reich is going to implement aspects of the treaty, expecting the rest of the EF to do their parts.

Patzel & Schlegel Defense Weekly published another related article three months after the ratification of the “European Digital Economies.” By May 1998, it was revealed that the Adalbert Munitions received 2 billion GDM from the Reich Government to develop an “integrated cyberdefense network” under the terms of the treaty. Adalbert Munitions recruited two State Enterprises, “Pantzer Mechanical Components” and “Liebezeit Electronic Components,” to manufacture the computer hardware. 450 Work-Plans, each valued at 3,400 GDM, were sold to facilities owned by the two State Enterprises at the Kontore.  

The articles published in Patzel & Schlegel Defense Weekly was made possible by the “Stumpf Website Developer Cooperative.” The Stumpf Website Developer Cooperative also offers its services to two Student Enterprises, Oberbröckling Gaming Studios, and Grupp Family Workshops. As part of the aforementioned “integrated cyberdefense network,” Adalbert Munitions initiated a joint venture with the Student Government, hiring recent university graduates (mostly computer scientists and engineers) and Student Enterprises to help develop the computer software.  

For our purposes, we will be studying the finances of these seven Enterprises between May 1998 and August 1998. Once we have become acclimated to their finances throughout the summer of 1998, everything else before and after will be a straightforward affair. In order to comprehend how well the Enterprises are accomplishing the terms of the treaty, we need to evaluate the Enterprises’ financial records during this period. We will start by studying how the Economic Planners at Pantzer Mechanical Components and Liebezeit Electronic Components reported their finances to the State Banks, the reports themselves created by their retinues of Accountants, who in turn compiled from information provided by the Delegates of the Enterprises.  

From the above table, we can infer that Pantzer Mechanical Components received 3,000 GDM from the Reich Government, spent the same amount buying steel from another State Enterprise, and ended May 1998 with an Inventory valued 3,000 GDM. In the following month, Pantzer Mechanical Parts added 6,000 GDM to the State Budget vis-à-vis the LER Process. The State Enterprise later spent 1,500 GDM on replacements tools and machinery and received an Invoice from Liebezeit Electronic Components for 4,500 GDM. It ended June 1998 with 9,000 GDM.

July 1998 saw the State Enterprise spending 1,500 GDM once upon receiving the scheduled Invoice for its replacement tools and machinery. The Value of the tools and machinery was 1,000, which meant that whoever sold them to Pantzer Mechanical Components received 500 GDM from that transactional sale. Regardless, it ended July 1998 with 10,000 GDM in the State Fund. The State Enterprise later gained 4,500 GDM from the transactional sale and added 800 GDM to the State Budget vis-à-vis the LER Process. The final total at the end of August 1998 is 15,300 GDM.

Scenario 1998: Compiling the Financial Ledger

For Pantzer Mechanical Components alone, we can develop a Balance Sheet, Income Statement, and Workflow Statement from the preceding SSR. This is assuming Pantzer Mechanical Components does not owe anything to anyone, failed to produce the required computer parts for Liebezeit Electronic Components, or underwent a Transvaluation of All Arbeit at any point in Summer 1998. In fact, we also have to assume that no Prices changed during the same timeframe. While such conditions cannot be guaranteed in real-world applications, what we can do here is account for them in the Financial Ledger.

As established earlier in Section Three, the Statement of Self-Reciprocation is a draft document for the Financial Ledger. If we rely on the SSR alone, we are not going to find out how much Actual Geld was spent by the State Enterprise nor will be able to find out how much there is left over at the end of August 1998. Consider the following table, which pertains to Pantzer Mechanical Parts’ WSA Workflow Statement between May and August 1998:   

The WSA Workflow Statement states that the 3,000 GDM was gained from the Reich Government, of which was later spent to procure the steel. The Enterprise actually operated at a budgetary deficit because no additional Actual Geld was received from transactional sales or from any external source. Only from the transactional sale in the following month did Pantzer Mechanical Components no longer sustained a budgetary deficit at the end of August 1998.

It is true that the State Enterprise contributed 6,800 GDM to the Life-Energy Reserve. It is also true that it spent 1,500 GDM in July 1998 and received 4,500 GDM the following month. What the WSA Workflow Statement does not tell us is where exactly the State Expenses and State Revenues are coming from. After all, the fact Pantzer Mechanical Parts was operating at a budgetary deficit in July 1998 should draw some concern, especially from the Reader.

The next table below is the WSA Income Statement for Pantzer Mechanical Parts. Here, we can deduce where the State Expenses and State Revenues are affecting the State Fund of this Enterprise throughout those four months in the summer of 1998:

As stated earlier, we know that 6,800 GDM was added to the State Budget and the Enterprise got to keep 4,500 GDM from the transactional sale. We also know that the Enterprise spent 500 GDM more on procuring replacement machinery and parts, even though their overall Value was previously recognized in the Tournament as 1,000 GDM. It can be assumed that the replacement machinery and tools had a Price of 1,500 GDM when the Invoice was issued in June 1998. This means that, one month later, an agreement was made that the State Commissariats should lower the Value and therefore its Price 1,000 GDM due to some circumstances outside the purview of this Entry. Additionally, because we do not know how much the Enterprise is spending on its Essential and Non-Essential Costs, any one of them could play a role in why there was a budgetary deficit in July 1998. After all, none of them were accounted for in the SSR because the Accountant is supposed to know about those Essential and Non-Essential Costs as they are more predictable and less likely to be skewed by the Delegate’s misjudgments.

Lastly, this leaves us with the WSA Balance Sheet for Pantzer Mechanical Parts. The WSA Balance Sheet is derived from information found in the WSA Workflow Statement and WSA Income Statement. The final table is the Enterprise’s Balance Sheet:

With the WSA Balance Sheet, we can find out how much Actual Geld is being gained and lost by the Enterprise throughout those four months. Everything found in the SSR, Workflow Statement, and Income Statement can be corroborated in the Balance Sheet. The purpose of the Balance Sheet is to provide Economic Planners, Inspectors, Central Planners, and Superintendents with specific information pertaining to the financial well-being of the Enterprise. They can in turn disclose the information to potential Lenders and Investors as well as the State Council. Always remember that Enterprises, regardless of their type or form, can receive investments from the State and Totality vis-à-vis the State Council, Kontore, and the Reciprocal-Reserve Banking System. Not to mention any Foreigners allowed by the Council State to invest in the Nation.  

Categories: Compendium, Work-Standard Accounting Practices

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