diff --git a/erpnext/hr/doctype/leave_application/leave_application.py b/erpnext/hr/doctype/leave_application/leave_application.py
index 31fd3e6..82eac57 100755
--- a/erpnext/hr/doctype/leave_application/leave_application.py
+++ b/erpnext/hr/doctype/leave_application/leave_application.py
@@ -388,6 +388,7 @@
 		date = allocation.to_date
 	leaves_taken = get_leaves_for_period(employee, leave_type, allocation.from_date, date, status="Approved")
 
+	leaves_encashed = 0
 	if frappe.db.get_value("Leave Type", leave_type, 'allow_encashment') and consider_encshed_leaves:
 		leaves_encashed = flt(allocation.total_leaves_encashed)