diff --git a/erpnext/accounts/doctype/gl_entry/gl_entry.py b/erpnext/accounts/doctype/gl_entry/gl_entry.py
index 8a910443b14..270ad53aa8d 100644
--- a/erpnext/accounts/doctype/gl_entry/gl_entry.py
+++ b/erpnext/accounts/doctype/gl_entry/gl_entry.py
@@ -256,7 +256,7 @@ class GLEntry(Document):
 			)
 
 	def validate_cost_center(self):
-		if not self.cost_center:
+		if not self.cost_center or self.is_cancelled:
 			return
 
 		is_group, company = frappe.get_cached_value("Cost Center", self.cost_center, ["is_group", "company"])