Purchase Guidelines

Sales and Use Tax

The System Members, as agencies of the State of Texas, are tax exempt and the credit card identifies the System Members as being tax exempt within the State of Texas. A cardholder should carry a Texas Sales Tax Exemption Form with their Payment Card.

Options for Sales Tax Charged

  • Contact vendor to obtain credit.  Initial expense and credit should be on the same account and expense code.  If the expense is in one month (expense report) and credit is in a following month, then the initial sales tax expense should be charged to a gift account while awaiting the credit from the vendor. 
  • Allocate gift account and use the same expense type/object code as the items purchased.
  • If vendor refused sales tax exemption, then allocate to sales tax payable account (GL account) and select expense type of Sales Tax Charged in Error (Travel) or 2110-Sales Tax Payable (Payment Card).  If either of these two expense types are selected, the funding account must be the GL account for sales tax payable.
  • Itemize the expense and mark the sales tax portion as an “Unallowed” expense in Concur.  When creating the itemization in Concur for the sales tax, use the same account and expense type as items purchased.  Marking this unallowed will notify the back office that this portion is to be collected from the employee.  An accounts receivable is set up and invoice distributed to the employee for payment of the unallowed expense as an accounts receivable. 
    • Due to the cost of creating an accounts receivable and collection efforts it is recommended that any amount less than $5 be allocated to a gift account if the department has a gift account.  If no gift account continue with the unallowed process.