diff --git a/erpnext/accounts/doctype/budget/budget.json b/erpnext/accounts/doctype/budget/budget.json
index d177fa8..1dad38f 100644
--- a/erpnext/accounts/doctype/budget/budget.json
+++ b/erpnext/accounts/doctype/budget/budget.json
@@ -34,7 +34,7 @@
    "read_only": 0, 
    "remember_last_selected_value": 0, 
    "report_hide": 0, 
-   "reqd": 1, 
+   "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
    "unique": 0
@@ -370,7 +370,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2016-11-22 11:58:42.211690", 
+ "modified": "2016-11-23 11:20:46.600912", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Budget", 
diff --git a/erpnext/accounts/doctype/budget/budget.py b/erpnext/accounts/doctype/budget/budget.py
index 7df7151..a3cc110 100644
--- a/erpnext/accounts/doctype/budget/budget.py
+++ b/erpnext/accounts/doctype/budget/budget.py
@@ -20,6 +20,8 @@
 			self.name = make_autoname(self.project + "/" + self.fiscal_year + "/.###")
 	
 	def validate(self):
+		if not self.cost_center and not self.project:
+			frappe.throw(_("Budget should be allocated against either Cost Center or Project."))
 		if self.cost_center:
 			self.validate_duplicate("cost_center")
 		if self.project:
diff --git a/erpnext/accounts/doctype/budget/test_budget.py b/erpnext/accounts/doctype/budget/test_budget.py
index ef6a1c8..ee44ee0 100644
--- a/erpnext/accounts/doctype/budget/test_budget.py
+++ b/erpnext/accounts/doctype/budget/test_budget.py
@@ -5,7 +5,7 @@
 
 import frappe
 import unittest
-from erpnext.accounts.doctype.budget.budget import get_actual_expense, BudgetError
+from erpnext.accounts.doctype.budget.budget import get_actual_expense_for_CC, BudgetError
 from erpnext.accounts.doctype.journal_entry.test_journal_entry import make_journal_entry
 
 class TestBudget(unittest.TestCase):		
@@ -89,7 +89,7 @@
 		budget.cancel()
 
 def set_total_expense_zero(posting_date, cost_center=None):
-	existing_expense = get_actual_expense({
+	existing_expense = get_actual_expense_for_CC({
 		"account": "_Test Account Cost for Goods Sold - _TC",
 		"cost_center": cost_center or "_Test Cost Center - _TC",
 		"monthly_end_date": posting_date,