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Accounts Payable

Payment of Purchase Order Invoices

Checks issued for goods or services that fulfill an open Purchase Order are included in the College's weekly check run. Please adhere to the following guidelines in order to ensure timely processing of invoices referencing open PO numbers:

  • All vendor invoices must reference the college's Purchase Order number and should be mailed directly to the address below. All end user departments should remind the vendor that a complete address is required for payment.

             Babson College 
             Accounts Payable Office 
             Babson Park MA 02457-0310

  • Vendors that have furnished Purchase Order goods and/or services are paid 30 days from the date of the invoice assuming timely receipt of the invoice by the Accounts Payable Office.
  • All check payments for Purchase Order goods and/or services will be sent to the vendor via first class mail.
  • Note: All vendor invoices must reference Babson’s Purchase Order Number

State Tax Exemption

Babson College is not liable for state sales tax, as it is a tax-exempt organization. For purchases, employees should give all vendors the College’s tax-exempt number – E 04-2103544

Payment of Check Requests

A Request For Check Form is used for the payment of small item purchases that could not be put on a college Purchasing Card or items that do not require a Purchase Order. This form must be approved by an appropriate department manager and must include the valid General Ledger account number to be charged.

Supporting documentation must be attached to the Request For Check form being submitted for payment. Examples of required documentation include the following: invoice, receipts, enrollment form, subscription form, or an invitation letter from the College. All completed payment requests should be forwarded to the Accounts Payable office.

Wire Payments

The preferred method of payment by Accounts Payable is by check or electronic funds transfer. Some payments may need to be paid by a wire transfer. Both Domestic Wire Transfers and Foreign Wire Transfers are processed on Friday. AP must receive all completed paperwork for the wire order request by 4:30 on Thursday. A wire order must have the appropriate documentation, departmental approvals and be reviewed by AP before the wire order is processed for transfer. A wire order request sent to AP as a same day request will be processed on a best effort basis. If there are insufficient funds available or the fed wire system has been closed for the day, the wire order will be sent the next business day. AP must be notified as soon as possible by the requestor if a wire order must be canceled or delayed.

Employee Reimbursements

An employee may need to purchase a good or service on behalf of the College using personal funds or may need to travel on College business. When this occurs, an Employee Expense Report must be filled out and submitted to the Accounts Payable Office. The employee will be reimbursed within 5 business days. The employee’s immediate supervisor or manager must approve the expenditure.

Acceptable supporting documentation must be attached to the expense report being submitted for payment and includes original receipts, copy of credit card statement, cancelled check and/or original invoice marked Paid.

Note: When possible, it is preferred that goods and services purchased on behalf of the college be paid for by using either a college-issued Purchasing Card or by the payment of a vendor invoice directly through the Accounts Payable Office.

Travel Advances

When an employee is going on a business trip in excess of 2 days, one can apply for a travel advance by filling out the Travel Advance Request Form. The amount of cash requested should be the minimum necessary to cover out-of-pocket expenses not chargeable to a Purchasing Card or Corporate Amex card. All cash advances are expected to be settled on an Employee Expense Report within 15 days after completion of the trip. Any unused cash advance should be returned immediately when a trip is cancelled or postponed for more than 7 days.

Tax Reporting Requirements

The IRS requires the College to maintain a signed W-9 Tax Form from all payees for year-end 1099 tax reporting purposes. Non-Incorporated companies or individuals (such as consultants or speakers) that are compensated for goods or services must furnish their Social Security or Federal Tax Identification number on the W-9 Form. The Accounts Payable Office will not release a check until this completed form has been received.

Non-Resident Alien Tax Policy Guidelines

You must give a W-8 Ben Form to the withholding agent or payer if you are a foreign person and you are the beneficial owner of an amount subject to withholding.

Babson College is required by the Internal Revenue Service to comply with specific federal tax withholding and reporting regulations when issuing payments to non-resident alien individuals. The types of payments affected include compensation, wages, honoraria, scholarships, fellowships and, in some cases, reimbursement for travel expenses. The general IRS rule is to withhold taxes at a rate of 30% for all payments made to non-resident alien individuals. However, an individual’s visa status, length of stay in the United States, or tax-treaty exemptions with specific countries could possibly reduce or eliminate the 30% tax withholding requirement in certain situations. For additional information, please contact Harry Paul-Emile at x3940.