diff --git a/server/src/api/controllers/Expenses.ts b/server/src/api/controllers/Expenses.ts
index 46c343cb2..03789ea25 100644
--- a/server/src/api/controllers/Expenses.ts
+++ b/server/src/api/controllers/Expenses.ts
@@ -104,6 +104,7 @@ export default class ExpensesController extends BaseController {
       check('currency_code').optional().isString().isLength({ max: 3 }),
       check('exchange_rate').optional({ nullable: true }).isNumeric().toFloat(),
       check('publish').optional().isBoolean().toBoolean(),
+      check('payee_id').optional({ nullable: true }).isNumeric().toInt(),
 
       check('categories').exists().isArray({ min: 1 }),
       check('categories.*.index')
@@ -392,6 +393,11 @@ export default class ExpensesController extends BaseController {
           errors: [{ type: 'EXPENSE_ALREADY_PUBLISHED', code: 700 }],
         });
       }
+      if (error.errorType === 'contact_not_found') {
+        return res.boom.badRequest(null, {
+          errors: [{ type: 'CONTACT_NOT_FOUND', code: 800 }],
+        });
+      }
     }
     next(error);
   }
diff --git a/server/src/interfaces/Expenses.ts b/server/src/interfaces/Expenses.ts
index 4a3263f0f..8a7ebac76 100644
--- a/server/src/interfaces/Expenses.ts
+++ b/server/src/interfaces/Expenses.ts
@@ -22,7 +22,7 @@ export interface IExpense {
   publishedAt: Date|null,
   userId: number,
   paymentDate: Date,
-
+  payeeId: number,
   categories: IExpenseCategory[],
 }
 
@@ -43,7 +43,7 @@ export interface IExpenseDTO {
   publish: boolean,
   userId: number,
   paymentDate: Date,
-
+  payeeId: number,
   categories: IExpenseCategoryDTO[],
 }
 
diff --git a/server/src/repositories/EntityRepository.ts b/server/src/repositories/EntityRepository.ts
index 24898fe49..04fe9f421 100644
--- a/server/src/repositories/EntityRepository.ts
+++ b/server/src/repositories/EntityRepository.ts
@@ -205,14 +205,15 @@ export default class EntityRepository {
   }
 
   /**
-   * 
+   * Arbitrary relation graphs can be upserted (insert + update + delete)
+   * using the upsertGraph method.
    * @param graph 
    * @param options 
    */
   upsertGraph(graph, options) {
     // Keep the input grpah immutable
     const graphCloned = cloneDeep(graph);
-    return this.model.upsertGraph(graphCloned)
+    return this.model.query().upsertGraph(graphCloned, options)
   }
 
   /**
diff --git a/server/src/repositories/ExpenseRepository.ts b/server/src/repositories/ExpenseRepository.ts
index a93ad7e31..92ea4e8fc 100644
--- a/server/src/repositories/ExpenseRepository.ts
+++ b/server/src/repositories/ExpenseRepository.ts
@@ -1,6 +1,7 @@
 import TenantRepository from "./TenantRepository";
 import moment from "moment";
 import { Expense } from 'models';
+
 export default class ExpenseRepository extends TenantRepository {
   /**
    * Constructor method.
diff --git a/server/src/services/Contacts/ContactsService.ts b/server/src/services/Contacts/ContactsService.ts
index c9c7f580b..6fc245f73 100644
--- a/server/src/services/Contacts/ContactsService.ts
+++ b/server/src/services/Contacts/ContactsService.ts
@@ -31,13 +31,17 @@ export default class ContactsService {
    * @param {TContactService} contactService
    * @return {Promise<IContact>}
    */
-  public async getContactByIdOrThrowError(tenantId: number, contactId: number, contactService: TContactService) {
+  public async getContactByIdOrThrowError(
+    tenantId: number,
+    contactId: number,
+    contactService?: TContactService
+  ) {
     const { contactRepository } = this.tenancy.repositories(tenantId);
 
     this.logger.info('[contact] trying to validate contact existance.', { tenantId, contactId });
     const contact = await contactRepository.findOne({
       id: contactId,
-      contactService: contactService,
+      ...(contactService) && ({ contactService }),
     });
 
     if (!contact) {
diff --git a/server/src/services/Expenses/ExpensesService.ts b/server/src/services/Expenses/ExpensesService.ts
index 27634afb5..c348bf227 100644
--- a/server/src/services/Expenses/ExpensesService.ts
+++ b/server/src/services/Expenses/ExpensesService.ts
@@ -12,6 +12,7 @@ import JournalCommands from 'services/Accounting/JournalCommands';
 import { IExpense, IExpensesFilter, IAccount, IExpenseDTO, IExpensesService, ISystemUser, IPaginationMeta } from 'interfaces';
 import DynamicListingService from 'services/DynamicListing/DynamicListService';
 import events from 'subscribers/events';
+import ContactsService from "services/Contacts/ContactsService";
 
 const ERRORS = {
   EXPENSE_NOT_FOUND: 'expense_not_found',
@@ -38,6 +39,9 @@ export default class ExpensesService implements IExpensesService {
   @EventDispatcher()
   eventDispatcher: EventDispatcherInterface;
 
+  @Inject()
+  contactsService: ContactsService;
+
   /**
    * Retrieve the payment account details or returns not found server error in case the 
    * given account not found on the storage.
@@ -323,6 +327,13 @@ export default class ExpensesService implements IExpensesService {
     // - Validate expenses accounts type.
     await this.validateExpensesAccountsType(tenantId, expensesAccounts);
 
+    // - Validate the expense payee contact id existance on storage.
+    if (expenseDTO.payeeId) {
+      await this.contactsService.getContactByIdOrThrowError(
+        tenantId,
+        expenseDTO.payeeId,
+      )
+    }
     // - Validate the given expense categories not equal zero.
     this.validateCategoriesNotEqualZero(expenseDTO);
 
@@ -346,8 +357,9 @@ export default class ExpensesService implements IExpensesService {
    * 2. Validate expense accounts exist on the storage.
    * 3. Validate payment account type.
    * 4. Validate expenses accounts type.
-   * 5. Validate the given expense categories not equal zero.
-   * 6. Stores the expense to the storage.
+   * 5. Validate the expense payee contact id existance on storage.
+   * 6. Validate the given expense categories not equal zero.
+   * 7. Stores the expense to the storage.
    * ---------
    * @param {number} tenantId 
    * @param {IExpenseDTO} expenseDTO 
@@ -359,26 +371,33 @@ export default class ExpensesService implements IExpensesService {
   ): Promise<IExpense> {
     const { expenseRepository } = this.tenancy.repositories(tenantId);
 
-    // 1. Validate payment account existance on the storage.
+    // - Validate payment account existance on the storage.
     const paymentAccount = await this.getPaymentAccountOrThrowError(
       tenantId,
       expenseDTO.paymentAccountId,
     );
-    // 2. Validate expense accounts exist on the storage.
+    // - Validate expense accounts exist on the storage.
     const expensesAccounts = await this.getExpensesAccountsOrThrowError(
       tenantId,
       this.mapExpensesAccountsIdsFromDTO(expenseDTO),
     );
-    // 3. Validate payment account type.
+    // - Validate payment account type.
     await this.validatePaymentAccountType(tenantId, paymentAccount);
 
-    // 4. Validate expenses accounts type.
+    // - Validate expenses accounts type.
     await this.validateExpensesAccountsType(tenantId, expensesAccounts);
 
-    // 5. Validate the given expense categories not equal zero.
+    // - Validate the expense payee contact id existance on storage.
+    if (expenseDTO.payeeId) {
+      await this.contactsService.getContactByIdOrThrowError(
+        tenantId,
+        expenseDTO.payeeId,
+      )
+    }
+    // - Validate the given expense categories not equal zero.
     this.validateCategoriesNotEqualZero(expenseDTO);
 
-    // 6. Save the expense to the storage.
+    // - Save the expense to the storage.
     const expenseObj = this.expenseDTOToModel(expenseDTO, authorizedUser);
     const expenseModel = await expenseRepository.upsertGraph(expenseObj);