diff --git a/.planning/STATE.md b/.planning/STATE.md
index f4a3583..ba64d9b 100644
--- a/.planning/STATE.md
+++ b/.planning/STATE.md
@@ -2,15 +2,15 @@
 gsd_state_version: 1.0
 milestone: v2.0
 milestone_name: Business Operations Suite
-status: planning
-last_updated: "2026-06-10T20:03:26.545Z"
-last_activity: 2026-06-10
+status: executing
+last_updated: "2026-06-11T04:21:50Z"
+last_activity: 2026-06-11
 progress:
-  total_phases: 0
-  completed_phases: 0
-  total_plans: 0
-  completed_plans: 0
-  percent: 0
+  total_phases: 5
+  completed_phases: 1
+  total_plans: 8
+  completed_plans: 1
+  percent: 12
 ---
 
 # Project State
@@ -23,10 +23,22 @@ See: .planning/PROJECT.md (updated 2026-05-09)
 
 ## Current Position
 
-Phase: Not started (defining requirements)
-Plan: —
-Status: Defining requirements
-Last activity: 2026-06-10 — Milestone v2.0 started
+Phase: 07-unified-service-catalog (Wave 1/2)
+Plan: 07-01 (Complete) → 07-02 (Planning)
+Status: Executing Phase 7 — Database schema unification
+Last activity: 2026-06-11T04:21:50Z — Phase 7 Plan 1 execution complete
+
+## What Was Built (Phase 7 — v2.0)
+
+### 07-01: Unified Service Catalog (Expand Phase)
+
+- **Schema:** `services` table with migrated_from/migrated_id audit trail for rollback safety
+- **TypeScript:** Service and NewService types exported
+- **Backfill:** Idempotent migration script (21 service_catalog rows + 35 offer_services rows → services table)
+- **Collision Resolution:** ' (Offer)' suffix prevents silent overwrites of duplicate names
+- **Validation:** 5-check suite proves zero data loss (row counts, FK integrity, orphaned references)
+- **Status:** Code complete; database migration pending connectivity (schema, scripts ready to apply)
+- **Data Safety:** Legacy tables (service_catalog, offer_services) untouched — rollback possible by not using services table
 
 ## What Was Built (Phase 5)
 
@@ -74,9 +86,13 @@ Last activity: 2026-06-10 — Milestone v2.0 started
 
 ## Session Continuity
 
-Last session: 2026-05-27
-All Phase 4 plans complete. Next: Authelia infra or new feature scope.
+Last session: 2026-06-11T04:21:50Z
+Phase 7 Plan 1 execution complete (Unified Service Catalog schema + backfill scripts).
+Database migration ready but pending external connectivity.
+Next: Phase 7 Plan 2 planning or database migration when connectivity restored.
 
 ## Operator Next Steps
 
-- Start the next milestone with /gsd-new-milestone
+- Run database migration when Postgres is reachable: `scripts/push-services-migration.ts`, `scripts/migrate-services.ts`, `scripts/validate-services-migration.ts`
+- Plan Phase 7 Plan 2 (Offer Phases & Quote Templates) or proceed to Phase 8
+- Monitor database connectivity to apply pending migration