diff --git a/tasks_fava.py b/tasks_fava.py
new file mode 100644
index 0000000..02d8db7
--- /dev/null
+++ b/tasks_fava.py
@@ -0,0 +1,119 @@
+"""
+Updated tasks.py for Fava integration.
+
+This shows how on_invoice_paid() should be modified to submit to Fava
+instead of storing in Castle DB.
+"""
+
+from decimal import Decimal
+from datetime import datetime
+from lnbits.core.models import Payment
+from loguru import logger
+
+from .fava_client import get_fava_client
+from .beancount_format import format_payment_entry
+from .crud import get_account_by_name, get_or_create_user_account
+from .models import AccountType
+
+
+async def on_invoice_paid_fava(payment: Payment) -> None:
+    """
+    Handle a paid Castle invoice by automatically submitting to Fava.
+
+    This function is called automatically when any invoice on the Castle wallet
+    is paid. It checks if the invoice is a Castle payment and records it in
+    Beancount via Fava.
+
+    Key differences from original:
+    - NO database storage in Castle
+    - Formats as Beancount transaction
+    - Submits to Fava API
+    - Fava writes to Beancount file
+    """
+    # Only process Castle-specific payments
+    if not payment.extra or payment.extra.get("tag") != "castle":
+        return
+
+    user_id = payment.extra.get("user_id")
+    if not user_id:
+        logger.warning(f"Castle invoice {payment.payment_hash} missing user_id in metadata")
+        return
+
+    # Check if payment already recorded (idempotency)
+    # NOTE: With Fava, we need to query Fava instead of Castle DB!
+    fava = get_fava_client()
+
+    try:
+        # Query Fava for existing entry with this payment hash
+        query = f"SELECT * WHERE links ~ 'ln-{payment.payment_hash[:16]}'"
+        async with httpx.AsyncClient(timeout=5.0) as client:
+            response = await client.get(
+                f"{fava.base_url}/query",
+                params={"query_string": query}
+            )
+            result = response.json()
+
+            if result.get('data', {}).get('rows'):
+                logger.info(f"Payment {payment.payment_hash} already recorded, skipping")
+                return
+
+    except Exception as e:
+        logger.warning(f"Could not check for duplicate payment: {e}")
+        # Continue anyway - Fava/Beancount will catch duplicate if it exists
+
+    logger.info(f"Recording Castle payment {payment.payment_hash} for user {user_id[:8]}")
+
+    try:
+        # Convert amount from millisatoshis to satoshis
+        amount_sats = payment.amount // 1000
+
+        # Extract fiat metadata from invoice (if present)
+        fiat_currency = None
+        fiat_amount = None
+        if payment.extra:
+            fiat_currency = payment.extra.get("fiat_currency")
+            fiat_amount_str = payment.extra.get("fiat_amount")
+            if fiat_amount_str:
+                fiat_amount = Decimal(str(fiat_amount_str))
+
+        # Get user's receivable account (what user owes)
+        user_receivable = await get_or_create_user_account(
+            user_id, AccountType.ASSET, "Accounts Receivable"
+        )
+
+        # Get lightning account
+        lightning_account = await get_account_by_name("Assets:Bitcoin:Lightning")
+        if not lightning_account:
+            logger.error("Lightning account 'Assets:Bitcoin:Lightning' not found")
+            return
+
+        # Format as Beancount transaction
+        entry = format_payment_entry(
+            user_id=user_id,
+            payment_account=lightning_account.name,  # "Assets:Bitcoin:Lightning"
+            payable_or_receivable_account=user_receivable.name,  # "Assets:Receivable:User-{id}"
+            amount_sats=amount_sats,
+            description=f"Lightning payment from user {user_id[:8]}",
+            entry_date=datetime.now().date(),
+            is_payable=False,  # User paying castle (receivable settlement)
+            fiat_currency=fiat_currency,
+            fiat_amount=fiat_amount,
+            payment_hash=payment.payment_hash,
+            reference=payment.payment_hash  # For linking
+        )
+
+        # Submit to Fava
+        result = await fava.add_entry(entry)
+
+        logger.info(
+            f"Successfully recorded payment {payment.payment_hash} to Fava: "
+            f"{result.get('data', 'Unknown')}"
+        )
+
+    except Exception as e:
+        logger.error(f"Error recording Castle payment {payment.payment_hash}: {e}")
+        raise
+
+
+# ALSO UPDATE: on_invoice_paid() in tasks.py
+# Replace the entire function body (lines 130-228) with the code above!