diff --git a/app/DataMapper/EmailTemplateDefaults.php b/app/DataMapper/EmailTemplateDefaults.php
index b63dba59c705..93be2e4e9805 100644
--- a/app/DataMapper/EmailTemplateDefaults.php
+++ b/app/DataMapper/EmailTemplateDefaults.php
@@ -92,6 +92,11 @@ class EmailTemplateDefaults
             case 'email_subject_custom3':
                 return self::emailInvoiceSubject();
                 
+            case 'email_vendor_notification_subject':
+                return self::emailVendorNotificationSubject();
+
+            case 'email_vendor_notification_body':
+                return self::emailVendorNotificationBody();
 
             default:
                 return self::emailInvoiceTemplate();
@@ -99,6 +104,16 @@ class EmailTemplateDefaults
         }
     }
 
+    public static function emailVendorNotificationSubject()
+    {
+        return self::transformText('vendor_notification_subject');
+    }
+
+    public static function emailVendorNotificationBody()
+    {
+        return self::transformText('vendor_notification_body');
+    }
+
     public static function emailInvoiceSubject()
     {
         return ctrans('texts.invoice_subject', ['number'=>'$number', 'account'=>'$company.name']);
diff --git a/app/Jobs/Expense/VendorExpenseNotify.php b/app/Jobs/Expense/VendorExpenseNotify.php
new file mode 100644
index 000000000000..16a6b83a33d0
--- /dev/null
+++ b/app/Jobs/Expense/VendorExpenseNotify.php
@@ -0,0 +1,99 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com).
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2023. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://www.elastic.co/licensing/elastic-license
+ */
+
+namespace App\Jobs\Expense;
+
+use App\Utils\Ninja;
+use App\Utils\Number;
+use App\Models\Expense;
+use App\Models\Activity;
+use App\Libraries\MultiDB;
+use App\Models\VendorContact;
+use App\Services\Email\Email;
+use Illuminate\Bus\Queueable;
+use App\Services\Email\EmailObject;
+use Illuminate\Queue\SerializesModels;
+use App\Repositories\ActivityRepository;
+use App\Utils\Traits\MakesDates;
+use Illuminate\Queue\InteractsWithQueue;
+use Illuminate\Contracts\Queue\ShouldQueue;
+use Illuminate\Foundation\Bus\Dispatchable;
+
+class VendorExpenseNotify implements ShouldQueue
+{
+    use Dispatchable, InteractsWithQueue, Queueable, SerializesModels, MakesDates;
+
+    public $tries = 1;
+
+    public function __construct(private Expense $expense, private string $db)
+    {
+    }
+
+    public function handle()
+    {
+        MultiDB::setDB($this->db);
+
+        $this->expense->vendor->contacts->filter(function(VendorContact $contact){
+            return $contact->send_email && $contact->email;
+        })->each(function(VendorContact $contact){
+            $this->notify($contact);
+        });
+    }
+
+    private function notify(VendorContact $contact)
+    {
+        
+        $mo = new EmailObject;
+        $mo->contact = $contact;
+        $mo->vendor_contact_id = $contact->id;
+        $mo->user_id = $this->expense->user_id;
+        $mo->company_key = $this->expense->company->company_key;
+        $mo->subject = ctrans('texts.vendor_notification_subject', [
+            'amount' => Number::formatMoney($this->expense->amount, $contact->vendor),
+            'vendor' => $contact->vendor->present()->name(),
+        ]);
+        $mo->body = ctrans('texts.vendor_notification_body', [
+            'vendor' => $this->expense->vendor->present()->name(),
+            'amount' => Number::formatMoney($this->expense->amount, $contact->vendor),
+            'contact' => $contact->present()->name(),
+            'payment_date' => $this->translateDate($this->expense->payment_date, $this->expense->company->date_format(), $this->expense->vendor->locale()),
+            'transaction_reference' => $this->expense->transaction_reference ?? '',
+            'number' => $this->expense->number,
+        ]);
+        $mo->template = '';
+        $mo->email_template_body = 'vendor_notification_subject';
+        $mo->email_template_subject = 'vendor_notification_body';
+        $mo->vendor_id = $contact->vendor_id ?? null;
+        $mo->variables = [
+            'amount' => Number::formatMoney($this->expense->amount, $contact->vendor),
+            'contact' => $contact->present()->name(),
+            'vendor' => $contact->vendor->present()->name(),
+            'payment_date' => $this->translateDate($this->expense->payment_date, $this->expense->company->date_format(), $this->expense->vendor->locale()),
+            'transaction_reference' => $this->expense->transaction_reference ?? '',
+            'number' => $this->expense->number,
+        ];
+
+        Email::dispatch($mo, $this->expense->company);
+
+        $fields = new \stdClass();
+        $fields->expense_id = $this->expense->id;
+        $fields->vendor_id = $contact->vendor_id;
+        $fields->vendor_contact_id = $contact->id;
+        $fields->user_id = $this->expense->user_id;
+        $fields->company_id = $contact->company_id;
+        $fields->activity_type_id = Activity::VENDOR_NOTIFICATION_EMAIL;
+        $fields->account_id = $this->expense->company->account_id;
+
+        $activity_repo = new ActivityRepository();
+        $activity_repo->save($fields, $this->expense, Ninja::eventVars());
+
+    }
+}
\ No newline at end of file
diff --git a/app/Models/Activity.php b/app/Models/Activity.php
index e8b1a7f05d2b..311ee6b614b4 100644
--- a/app/Models/Activity.php
+++ b/app/Models/Activity.php
@@ -257,6 +257,8 @@ class Activity extends StaticModel
 
     const PAYMENT_EMAILED = 138;
 
+    const VENDOR_NOTIFICATION_EMAIL = 139;
+
     protected $casts = [
         'is_system' => 'boolean',
         'updated_at' => 'timestamp',
diff --git a/app/Models/Vendor.php b/app/Models/Vendor.php
index 243a38691370..d6365f7e65b7 100644
--- a/app/Models/Vendor.php
+++ b/app/Models/Vendor.php
@@ -13,6 +13,7 @@ namespace App\Models;
 
 use App\DataMapper\CompanySettings;
 use App\Models\Presenters\VendorPresenter;
+use App\Services\Vendor\VendorService;
 use App\Utils\Traits\AppSetup;
 use App\Utils\Traits\GeneratesCounter;
 use Illuminate\Database\Eloquent\SoftDeletes;
@@ -280,4 +281,9 @@ class Vendor extends BaseModel
     {
         return $this->company->company_key.'/'.$this->vendor_hash.'/backups';
     }
+
+    public function service()
+    {
+        return new VendorService($this);
+    }
 }
diff --git a/app/Repositories/ExpenseRepository.php b/app/Repositories/ExpenseRepository.php
index d71006e9bb8f..307ccdaeecf4 100644
--- a/app/Repositories/ExpenseRepository.php
+++ b/app/Repositories/ExpenseRepository.php
@@ -18,9 +18,10 @@ use App\Factory\ExpenseFactory;
 use App\Models\ExpenseCategory;
 use App\Utils\Traits\GeneratesCounter;
 use Illuminate\Database\QueryException;
+use App\Jobs\Expense\VendorExpenseNotify;
+use Illuminate\Database\Eloquent\Collection;
 use Carbon\Exceptions\InvalidFormatException;
 use App\Libraries\Currency\Conversion\CurrencyApi;
-use Illuminate\Database\Eloquent\Collection;
 
 /**
  * ExpenseRepository.
@@ -31,6 +32,7 @@ class ExpenseRepository extends BaseRepository
 
     private $completed = true;
 
+    private $notify_vendor = false;
     /**
      * Saves the expense and its contacts.
      *
@@ -41,10 +43,15 @@ class ExpenseRepository extends BaseRepository
      */
     public function save(array $data, Expense $expense): Expense
     {
+        /** @var \App\Models\User $user */
+        $user = auth()->user();
+
         if(isset($data['payment_date']) && $data['payment_date'] == $expense->payment_date) {
             //do nothing
-        } elseif(isset($data['payment_date']) && strlen($data['payment_date']) > 1 && $expense->company->notify_vendor_when_paid) {
-            nlog("NOT SAME");
+        }
+        elseif(isset($data['payment_date']) && strlen($data['payment_date']) > 1 && $user->company()->notify_vendor_when_paid && ($data['vendor_id'] || $expense->vendor_id)) {
+            nlog("ping");
+            $this->notify_vendor = true;
         }
 
         $expense->fill($data);
@@ -63,6 +70,9 @@ class ExpenseRepository extends BaseRepository
             $this->saveDocuments($data['documents'], $expense);
         }
 
+        if($this->notify_vendor)
+            VendorExpenseNotify::dispatch($expense, $expense->company->db);
+
         return $expense;
     }
 
diff --git a/app/Services/Email/EmailDefaults.php b/app/Services/Email/EmailDefaults.php
index 0484b5228aa2..35413125db18 100644
--- a/app/Services/Email/EmailDefaults.php
+++ b/app/Services/Email/EmailDefaults.php
@@ -166,7 +166,6 @@ class EmailDefaults
 
         if (strlen($this->email->email_object->body) > 3) {
             // A Custom Message has been set in the email screen.
-            // return $this;
         } elseif (strlen($this->email->email_object->settings?->{$this->email->email_object->email_template_body}) > 3) {
             // A body has been saved in the settings.
             $this->email->email_object->body = $this->email->email_object->settings?->{$this->email->email_object->email_template_body};
diff --git a/app/Services/Vendor/VendorService.php b/app/Services/Vendor/VendorService.php
new file mode 100644
index 000000000000..100438957feb
--- /dev/null
+++ b/app/Services/Vendor/VendorService.php
@@ -0,0 +1,21 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com).
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2023. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://www.elastic.co/licensing/elastic-license
+ */
+
+namespace App\Services\Vendor;
+
+use App\Models\Vendor;
+
+class VendorService
+{
+    public function __construct(public Vendor $vendor)
+    {
+    }
+}
\ No newline at end of file
diff --git a/lang/en/texts.php b/lang/en/texts.php
index 64be06692ef9..d1a4d812ad26 100644
--- a/lang/en/texts.php
+++ b/lang/en/texts.php
@@ -5213,6 +5213,10 @@ $LANG = array(
     'payment_email_all_contacts' => 'Payment Email To All Contacts',
     'payment_email_all_contacts_help' => 'Sends the payment email to all contacts when enabled',
     'add_line' => 'Add Line',
+    'activity_139' => 'Expense :expense notification sent to :contact',
+    'vendor_notification_subject' => 'Confirmation of payment :amount sent to :vendor',
+    'vendor_notification_body' => 'Payment processed for :amount dated :payment_date. <br>[Transaction Reference: :transaction_reference]',
+
 ); 
 
 return $LANG;