diff --git a/erpnext/accounts/general_ledger.py b/erpnext/accounts/general_ledger.py
index 97008d0b057..dcfe77b4793 100644
--- a/erpnext/accounts/general_ledger.py
+++ b/erpnext/accounts/general_ledger.py
@@ -35,7 +35,8 @@ def make_gl_entries(
 ):
 	if gl_map:
 		if (
-			not cint(frappe.get_single_value("Accounts Settings", "use_legacy_budget_controller"))
+			not cancel
+			and not cint(frappe.get_single_value("Accounts Settings", "use_legacy_budget_controller"))
 			and gl_map[0].voucher_type != "Period Closing Voucher"
 		):
 			bud_val = BudgetValidation(gl_map=gl_map)