# What do the four money states on a budget line mean?

Every Fix and Flip budget line tracks money in four states:

1. Estimate: what you expect the line to cost.
2. Committed: what you have committed to a vendor.
3. Invoiced: what has been billed to you.
4. Paid: what you have actually paid.

The canonical budget rollup follows one rule: the furthest financial fact wins, so the newest, hardest number always surfaces. An invoice above a stale commitment flags the line over-budget immediately instead of hiding the overage. Change orders are first-class, audited events, and a reason is required on any financial, vendor, or status edit.

Read online: https://docs.closemagnet.com/articles/questions/four-money-states
