diff --git a/erpnext/accounts/doctype/budget/budget.py b/erpnext/accounts/doctype/budget/budget.py
index 2f2b549cf46..8e58f294505 100644
--- a/erpnext/accounts/doctype/budget/budget.py
+++ b/erpnext/accounts/doctype/budget/budget.py
@@ -510,7 +510,7 @@ def get_accumulated_monthly_budget(monthly_distribution, posting_date, fiscal_ye
 	accumulated_percentage = 0.0
 
 	while dt <= getdate(posting_date):
-		if monthly_distribution:
+		if monthly_distribution and distribution:
 			accumulated_percentage += distribution.get(getdate(dt).strftime("%B"), 0)
 		else:
 			accumulated_percentage += 100.0 / 12
diff --git a/erpnext/accounts/doctype/budget/test_budget.py b/erpnext/accounts/doctype/budget/test_budget.py
index 6fa655c0a36..7c071da1acc 100644
--- a/erpnext/accounts/doctype/budget/test_budget.py
+++ b/erpnext/accounts/doctype/budget/test_budget.py
@@ -5,7 +5,11 @@ import unittest
 import frappe
 from frappe.utils import now_datetime, nowdate
 
-from erpnext.accounts.doctype.budget.budget import BudgetError, get_actual_expense
+from erpnext.accounts.doctype.budget.budget import (
+	BudgetError,
+	get_accumulated_monthly_budget,
+	get_actual_expense,
+)
 from erpnext.accounts.doctype.journal_entry.test_journal_entry import make_journal_entry
 from erpnext.accounts.utils import get_fiscal_year
 from erpnext.buying.doctype.purchase_order.test_purchase_order import create_purchase_order
@@ -47,10 +51,13 @@ class TestBudget(ERPNextTestSuite):
 
 		frappe.db.set_value("Budget", budget.name, "action_if_accumulated_monthly_budget_exceeded", "Stop")
 
+		accumulated_limit = get_accumulated_monthly_budget(
+			budget.monthly_distribution, nowdate(), budget.fiscal_year, budget.accounts[0].budget_amount
+		)
 		jv = make_journal_entry(
 			"_Test Account Cost for Goods Sold - _TC",
 			"_Test Bank - _TC",
-			40000,
+			accumulated_limit + 1,
 			"_Test Cost Center - _TC",
 			posting_date=nowdate(),
 		)
@@ -67,10 +74,13 @@ class TestBudget(ERPNextTestSuite):
 
 		frappe.db.set_value("Budget", budget.name, "action_if_accumulated_monthly_budget_exceeded", "Stop")
 
+		accumulated_limit = get_accumulated_monthly_budget(
+			budget.monthly_distribution, nowdate(), budget.fiscal_year, budget.accounts[0].budget_amount
+		)
 		jv = make_journal_entry(
 			"_Test Account Cost for Goods Sold - _TC",
 			"_Test Bank - _TC",
-			40000,
+			accumulated_limit + 1,
 			"_Test Cost Center - _TC",
 			posting_date=nowdate(),
 		)
@@ -139,7 +149,12 @@ class TestBudget(ERPNextTestSuite):
 		frappe.db.set_value("Budget", budget.name, "action_if_accumulated_monthly_budget_exceeded", "Stop")
 		frappe.db.set_value("Budget", budget.name, "fiscal_year", fiscal_year)
 
-		po = create_purchase_order(transaction_date=nowdate(), do_not_submit=True)
+		accumulated_limit = get_accumulated_monthly_budget(
+			budget.monthly_distribution, nowdate(), budget.fiscal_year, budget.accounts[0].budget_amount
+		)
+		po = create_purchase_order(
+			transaction_date=nowdate(), qty=1, rate=accumulated_limit + 1, do_not_submit=True
+		)
 
 		po.set_missing_values()
 
@@ -157,11 +172,13 @@ class TestBudget(ERPNextTestSuite):
 		frappe.db.set_value("Budget", budget.name, "action_if_accumulated_monthly_budget_exceeded", "Stop")
 
 		project = frappe.get_value("Project", {"project_name": "_Test Project"})
-
+		accumulated_limit = get_accumulated_monthly_budget(
+			budget.monthly_distribution, nowdate(), budget.fiscal_year, budget.accounts[0].budget_amount
+		)
 		jv = make_journal_entry(
 			"_Test Account Cost for Goods Sold - _TC",
 			"_Test Bank - _TC",
-			40000,
+			accumulated_limit + 1,
 			"_Test Cost Center - _TC",
 			project=project,
 			posting_date=nowdate(),
@@ -276,10 +293,13 @@ class TestBudget(ERPNextTestSuite):
 		budget = make_budget(budget_against="Cost Center", cost_center="_Test Company - _TC")
 		frappe.db.set_value("Budget", budget.name, "action_if_accumulated_monthly_budget_exceeded", "Stop")
 
+		accumulated_limit = get_accumulated_monthly_budget(
+			budget.monthly_distribution, nowdate(), budget.fiscal_year, budget.accounts[0].budget_amount
+		)
 		jv = make_journal_entry(
 			"_Test Account Cost for Goods Sold - _TC",
 			"_Test Bank - _TC",
-			40000,
+			accumulated_limit + 1,
 			"_Test Cost Center 2 - _TC",
 			posting_date=nowdate(),
 		)
@@ -306,10 +326,13 @@ class TestBudget(ERPNextTestSuite):
 		budget = make_budget(budget_against="Cost Center", cost_center=cost_center)
 		frappe.db.set_value("Budget", budget.name, "action_if_accumulated_monthly_budget_exceeded", "Stop")
 
+		accumulated_limit = get_accumulated_monthly_budget(
+			budget.monthly_distribution, nowdate(), budget.fiscal_year, budget.accounts[0].budget_amount
+		)
 		jv = make_journal_entry(
 			"_Test Account Cost for Goods Sold - _TC",
 			"_Test Bank - _TC",
-			40000,
+			accumulated_limit + 1,
 			cost_center,
 			posting_date=nowdate(),
 		)
@@ -427,6 +450,7 @@ def make_budget(**args):
 
 	monthly_distribution = frappe.get_doc("Monthly Distribution", "_Test Distribution")
 	monthly_distribution.fiscal_year = fiscal_year
+	monthly_distribution.save()
 
 	budget.fiscal_year = fiscal_year
 	budget.monthly_distribution = "_Test Distribution"