Accounts Payable Process

Required Documentation Prior to Payment
The accounting office needs the following items in place to process payment for purchases on behalf of the Snohomish School District:

Purchase Orders
1.    Verification that the items have been received from the building/department.  This is typically done by receiving items in WESPaC.  Click here to view the step by step process to receive items in WESPaC. See scanning and attaching in WESPaC.
2.    Packing slip or receipt (to be maintained by the school/department)

P-Card
1.    Purchase request form approved by budget manager
2.    Reconciliation completed online
3.    Packing slip or receipt attached to reconciliation report & returned to accounting

Requisitions
1.    Purchase request form approved by budget manager
2.    Packing slip or receipt attached to purchase request

All expenditures must be pre-approved by the budget administrator.

A/P documentation due dates:

Vendor checks:  Generally, the cutoff date for vendor checks is Tuesday by noon for payment on Friday.  However, we batch vendor checks weekly, so even if a check misses a weekly run, it can be put in the next week’s run.

Employee reimbursement checks:
  The cut-off date for employee reimbursements is the 10th of the month for payment the last day of the month.

Sales Tax

School Districts are required to pay Washington State Sales tax on all purchases of goods and retail services.  Some examples of retail services include:
Installing, repairing, cleaning, improving, constructing and decorating real or personal property for consumers (see Sales Tax Guide for more details). See tax rate for our schools.

School districts are generally not sales tax exempt.  We are only exempt when purchasing the following:
1.    Newspapers
2.    Unprepared food items
3.    Items for certain ASB fund raising activities  (limited – call Accounting)

School Districts are required to collect retail sales tax when making the following types of retail sales:
1.    Sales of surplus equipment
2.    Charges to the public for swimming
3.    Sales of academic transcripts

 

School districts are not required to collect sales tax when making the following types of retail sales:
1.    Student stores
a.    However, as stated above, we are required to pay sales tax when purchasing sales taxable items such as pens, pencils, notebooks, binders, t-shirts, etc. 
2.    Sale of meals/beverages at cafeteria/snack bar to students or staff.
a.    However, schools must pay sales tax when purchasing sales taxable items such as prepared meals and carbonated beverages.
b.    Exception:  Schools must collect sales tax when making sales of meals/beverages to persons other than students or staff.

School districts are not required to collect sales tax when selling the above items, but they are required to pay sales tax when purchasing the items.  An exception to this may be Annual/Yearbook sales.  Please call accounting for information.

Washington state sales tax is computed using the selling price, which includes freight, handling or delivery charges.

Use Tax on Purchases

Businesses outside the State of Washington may not charge Washington State Sales tax on their invoices.  In this case, we must pay use tax directly to the State.  The use tax rates are the same as the sales tax rates, which are based on the location of sale. 

When making purchases from out-of-state vendors, please remember to estimate the use tax rate we are required to pay.  Use tax is paid directly to the Department of Revenue by accounting, and will be deducted from the budget listed on the PO or P-Card Transaction.