diff --git a/client/src/components/ContactsSuggestField.js b/client/src/components/ContactsSuggestField.js
index 6e165d2c8..3e5b8ecad 100644
--- a/client/src/components/ContactsSuggestField.js
+++ b/client/src/components/ContactsSuggestField.js
@@ -51,6 +51,7 @@ export default function ContactsSuggestField({
       <MenuItem
         key={contact.id}
         text={contact.display_name}
+        label={contact.formatted_contact_service}
         onClick={handleClick}
       />
     ),
diff --git a/client/src/components/DataTableCells/ContactsListFieldCell.js b/client/src/components/DataTableCells/ContactsListFieldCell.js
index ee1b72fc9..468764d62 100644
--- a/client/src/components/DataTableCells/ContactsListFieldCell.js
+++ b/client/src/components/DataTableCells/ContactsListFieldCell.js
@@ -12,10 +12,7 @@ export default function ContactsListCellRenderer({
 }) {
   const handleContactSelected = useCallback(
     (contact) => {
-      updateData(index, id, {
-        contact_id: contact.id,
-        contact_type: contact.contact_type,
-      });
+      updateData(index, 'contact_id', contact.id);
     },
     [updateData, index, id],
   );
diff --git a/client/src/containers/Accounting/MakeJournal/MakeJournalEntriesTable.js b/client/src/containers/Accounting/MakeJournal/MakeJournalEntriesTable.js
index ac61fadde..5828aa31f 100644
--- a/client/src/containers/Accounting/MakeJournal/MakeJournalEntriesTable.js
+++ b/client/src/containers/Accounting/MakeJournal/MakeJournalEntriesTable.js
@@ -25,7 +25,7 @@ export default function MakeJournalEntriesTable({
   minLinesNumber = 4,
   currencyCode,
 }) {
-  const { accounts, customers } = useMakeJournalFormContext();
+  const { accounts, contacts } = useMakeJournalFormContext();
 
   // Memorized data table columns.
   const columns = useJournalTableEntriesColumns();
@@ -68,10 +68,7 @@ export default function MakeJournalEntriesTable({
         errors: error,
         updateData: handleUpdateData,
         removeRow: handleRemoveRow,
-        contacts: customers.map((customer) => ({
-          ...customer,
-          contact_type: 'customer',
-        })),
+        contacts,
         autoFocus: ['account_id', 0],
         currencyCode,
       }}
diff --git a/client/src/containers/Accounting/MakeJournal/MakeJournalProvider.js b/client/src/containers/Accounting/MakeJournal/MakeJournalProvider.js
index beab5394b..2241ff28c 100644
--- a/client/src/containers/Accounting/MakeJournal/MakeJournalProvider.js
+++ b/client/src/containers/Accounting/MakeJournal/MakeJournalProvider.js
@@ -2,7 +2,7 @@ import React, { createContext, useState } from 'react';
 import DashboardInsider from 'components/Dashboard/DashboardInsider';
 import {
   useAccounts,
-  useCustomers,
+  useAutoCompleteContacts,
   useCurrencies,
   useJournal,
   useCreateJournal,
@@ -21,9 +21,9 @@ function MakeJournalProvider({ journalId, ...props }) {
 
   // Load the customers list.
   const {
-    data: { customers },
-    isLoading: isCustomersLoading,
-  } = useCustomers();
+    data: contacts,
+    isLoading: isContactsLoading,
+  } = useAutoCompleteContacts();
 
   // Load the currencies list.
   const { data: currencies, isLoading: isCurrenciesLoading } = useCurrencies();
@@ -47,7 +47,7 @@ function MakeJournalProvider({ journalId, ...props }) {
 
   const provider = {
     accounts,
-    customers,
+    contacts,
     currencies,
     manualJournal,
 
@@ -55,7 +55,7 @@ function MakeJournalProvider({ journalId, ...props }) {
     editJournalMutate,
 
     isAccountsLoading,
-    isCustomersLoading,
+    isContactsLoading,
     isCurrenciesLoading,
     isJournalLoading,
     isSettingsLoading,
@@ -72,7 +72,7 @@ function MakeJournalProvider({ journalId, ...props }) {
         isJournalLoading ||
         isAccountsLoading ||
         isCurrenciesLoading ||
-        isCustomersLoading || 
+        isContactsLoading || 
         isSettingsLoading
       }
       name={'make-journal-page'}
diff --git a/server/src/api/controllers/ManualJournals.ts b/server/src/api/controllers/ManualJournals.ts
index eec84227a..288adc3e8 100644
--- a/server/src/api/controllers/ManualJournals.ts
+++ b/server/src/api/controllers/ManualJournals.ts
@@ -128,7 +128,6 @@ export default class ManualJournalsController extends BaseController {
         .optional({ nullable: true })
         .isInt({ max: DATATYPES_LENGTH.INT_10 })
         .toInt(),
-      check('entries.*.contact_type').optional().isIn(['vendor', 'customer']),
     ];
   }
 
diff --git a/server/src/database/migrations/20200105195825_create_manual_journals_entries_table.js b/server/src/database/migrations/20200105195825_create_manual_journals_entries_table.js
index b061f9fb5..ecf22cf4c 100644
--- a/server/src/database/migrations/20200105195825_create_manual_journals_entries_table.js
+++ b/server/src/database/migrations/20200105195825_create_manual_journals_entries_table.js
@@ -6,7 +6,6 @@ exports.up = function(knex) {
     table.decimal('debit', 13, 3);
     table.integer('index').unsigned();
     table.integer('account_id').unsigned().index().references('id').inTable('accounts');
-    table.string('contact_type').nullable().index();
     table.integer('contact_id').unsigned().nullable().index();
     table.string('note');
     table.integer('manual_journal_id').unsigned().index().references('id').inTable('manual_journals');
diff --git a/server/src/interfaces/ManualJournal.ts b/server/src/interfaces/ManualJournal.ts
index 2e18d61b5..0b0061c96 100644
--- a/server/src/interfaces/ManualJournal.ts
+++ b/server/src/interfaces/ManualJournal.ts
@@ -25,7 +25,6 @@ export interface IManualJournalEntry {
   accountId: number;
   note: string;
   contactId?: number;
-  contactType?: string;
 }
 
 export interface IManualJournalEntryDTO {
@@ -35,7 +34,6 @@ export interface IManualJournalEntryDTO {
   accountId: number;
   note: string;
   contactId?: number;
-  contactType?: string;
 }
 
 export interface IManualJournalDTO {
diff --git a/server/src/services/ManualJournals/ManualJournalsService.ts b/server/src/services/ManualJournals/ManualJournalsService.ts
index 180b27059..bedd8ab63 100644
--- a/server/src/services/ManualJournals/ManualJournalsService.ts
+++ b/server/src/services/ManualJournals/ManualJournalsService.ts
@@ -1,7 +1,7 @@
 import { difference, sumBy, omit, map } from 'lodash';
 import { Service, Inject } from 'typedi';
 import moment from 'moment';
-import { ServiceError } from 'exceptions';
+import { ServiceError, ServiceErrors } from 'exceptions';
 import {
   IManualJournalDTO,
   IManualJournalsService,
@@ -187,15 +187,27 @@ export default class ManualJournalsService implements IManualJournalsService {
   private async validateAccountWithContactType(
     tenantId: number,
     entriesDTO: IManualJournalEntry[],
-
     accountBySlug: string,
     contactType: string
-  ): Promise<void> {
-    const { Account, Contact } = this.tenancy.models(tenantId);
+  ): Promise<void | ServiceError> {
+    const { Account } = this.tenancy.models(tenantId);
+    const { contactRepository } = this.tenancy.repositories(tenantId);
 
     // Retrieve account meta by the given account slug.
     const account = await Account.query().findOne('slug', accountBySlug);
 
+    // Retrieve all stored contacts on the storage from contacts entries.
+    const storedContacts = await contactRepository.findWhereIn(
+      'id',
+      entriesDTO
+        .filter((entry) => entry.contactId)
+        .map((entry) => entry.contactId)
+    );
+    // Converts the stored contacts to map with id as key and entry as value.
+    const storedContactsMap = new Map(
+      storedContacts.map((contact) => [contact.id, contact])
+    );
+
     // Filter all entries of the given account.
     const accountEntries = entriesDTO.filter(
       (entry) => entry.accountId === account.id
@@ -205,14 +217,15 @@ export default class ManualJournalsService implements IManualJournalsService {
       return;
     }
     // Filter entries that have no contact type or not equal the valid type.
-    const entriesNoContact = accountEntries.filter(
-      (entry) => !entry.contactType || entry.contactType !== contactType
-    );
+    const entriesNoContact = accountEntries.filter((entry) => {
+      const contact = storedContactsMap.get(entry.contactId);
+      return !contact || contact.contactService !== contactType;
+    });
     // Throw error in case one of entries that has invalid contact type.
     if (entriesNoContact.length > 0) {
       const indexes = entriesNoContact.map((e) => e.index);
 
-      throw new ServiceError(ERRORS.ENTRIES_SHOULD_ASSIGN_WITH_CONTACT, '', {
+      return new ServiceError(ERRORS.ENTRIES_SHOULD_ASSIGN_WITH_CONTACT, '', {
         accountSlug: accountBySlug,
         contactType,
         indexes,
@@ -242,11 +255,25 @@ export default class ManualJournalsService implements IManualJournalsService {
         'accounts-payable',
         'vendor'
       ),
-    ]);
+    ]).then((results) => {
+      const metadataErrors = results
+        .filter((result) => result instanceof ServiceError)
+        .map((result: ServiceError) => result.payload);
+
+      if (metadataErrors.length > 0) {
+        throw new ServiceError(
+          ERRORS.ENTRIES_SHOULD_ASSIGN_WITH_CONTACT,
+          '',
+          metadataErrors
+        );
+      }
+
+      return results;
+    });
   }
 
   /**
-   * Vaplidate entries contacts existance.
+   * Validate entries contacts existance.
    * @param {number} tenantId -
    * @param {IManualJournalDTO} manualJournalDTO
    */
@@ -280,10 +307,7 @@ export default class ManualJournalsService implements IManualJournalsService {
         const storedContact = storedContactsMap.get(contactEntry.contactId);
 
         // in case the contact id not found.
-        if (
-          !storedContact ||
-          storedContact.contactService !== contactEntry.contactType
-        ) {
+        if (!storedContact) {
           notFoundContactsIds.push(storedContact);
         }
       });
@@ -347,7 +371,8 @@ export default class ManualJournalsService implements IManualJournalsService {
     // Settings tenant service.
     const settings = this.tenancy.settings(tenantId);
     const currencyCode = settings.get({
-      group: 'organization', key: 'base_currency',
+      group: 'organization',
+      key: 'base_currency',
     });
     // Validate manual journal number require.
     this.validateJournalNoRequire(journalNumber);
@@ -803,7 +828,7 @@ export default class ManualJournalsService implements IManualJournalsService {
 
     return manualJournal;
   }
-  
+
   /**
    * Reverts the manual journal journal entries.
    * @param {number} tenantId