diff --git a/erpnext/accounts/doctype/budget/budget.py b/erpnext/accounts/doctype/budget/budget.py
index 53838fb..4c628a4 100644
--- a/erpnext/accounts/doctype/budget/budget.py
+++ b/erpnext/accounts/doctype/budget/budget.py
@@ -184,6 +184,11 @@
 			amount = expense_amount or get_amount(args, budget)
 			yearly_action, monthly_action = get_actions(args, budget)
 
+			if yearly_action in ("Stop", "Warn"):
+				compare_expense_with_budget(
+					args, flt(budget.budget_amount), _("Annual"), yearly_action, budget.budget_against, amount
+				)
+
 			if monthly_action in ["Stop", "Warn"]:
 				budget_amount = get_accumulated_monthly_budget(
 					budget.monthly_distribution, args.posting_date, args.fiscal_year, budget.budget_amount
@@ -195,28 +200,28 @@
 					args, budget_amount, _("Accumulated Monthly"), monthly_action, budget.budget_against, amount
 				)
 
-			if (
-				yearly_action in ("Stop", "Warn")
-				and monthly_action != "Stop"
-				and yearly_action != monthly_action
-			):
-				compare_expense_with_budget(
-					args, flt(budget.budget_amount), _("Annual"), yearly_action, budget.budget_against, amount
-				)
-
 
 def compare_expense_with_budget(args, budget_amount, action_for, action, budget_against, amount=0):
-	actual_expense = amount or get_actual_expense(args)
-	if actual_expense > budget_amount:
-		diff = actual_expense - budget_amount
+	actual_expense = get_actual_expense(args)
+	total_expense = actual_expense + amount
+
+	if total_expense > budget_amount:
+		if actual_expense > budget_amount:
+			error_tense = _("is already")
+			diff = actual_expense - budget_amount
+		else:
+			error_tense = _("will be")
+			diff = total_expense - budget_amount
+
 		currency = frappe.get_cached_value("Company", args.company, "default_currency")
 
-		msg = _("{0} Budget for Account {1} against {2} {3} is {4}. It will exceed by {5}").format(
+		msg = _("{0} Budget for Account {1} against {2} {3} is {4}. It {5} exceed by {6}").format(
 			_(action_for),
 			frappe.bold(args.account),
-			args.budget_against_field,
+			frappe.unscrub(args.budget_against_field),
 			frappe.bold(budget_against),
 			frappe.bold(fmt_money(budget_amount, currency=currency)),
+			error_tense,
 			frappe.bold(fmt_money(diff, currency=currency)),
 		)
 
@@ -227,9 +232,9 @@
 			action = "Warn"
 
 		if action == "Stop":
-			frappe.throw(msg, BudgetError)
+			frappe.throw(msg, BudgetError, title=_("Budget Exceeded"))
 		else:
-			frappe.msgprint(msg, indicator="orange")
+			frappe.msgprint(msg, indicator="orange", title=_("Budget Exceeded"))
 
 
 def get_actions(args, budget):
@@ -351,7 +356,9 @@
 			"""
 		select sum(gle.debit) - sum(gle.credit)
 		from `tabGL Entry` gle
-		where gle.account=%(account)s
+		where
+			is_cancelled = 0
+			and gle.account=%(account)s
 			{condition1}
 			and gle.fiscal_year=%(fiscal_year)s
 			and gle.company=%(company)s