Tracking Vendor Payments

Linking vendor payments to budget line items and tracking paid vs. owed amounts.

Payment Tracking

Every payment to a vendor should be:
1. Logged as an **expense** in OwnerDraw
2. Linked to the correct **budget line item**
3. Associated with the **vendor** record
4. Documented with a **receipt or invoice**

Payment Best Practices

• **Never pay 100% upfront** — Standard practice is to pay upon completion, or in stages for larger jobs
• **Get lien waivers** — Collect a signed lien waiver with every payment
• **Document everything** — Keep receipts, canceled checks, and invoices

> WARNING: Never pay a subcontractor in full before the work is complete and inspected. A common payment schedule is 50% at start, 40% at completion, and 10% held as retainage until you're satisfied with the work.