diff --git a/erpnext/accounts/doctype/budget/budget.json b/erpnext/accounts/doctype/budget/budget.json
index a17919c52b0..bf1e7d091c1 100644
--- a/erpnext/accounts/doctype/budget/budget.json
+++ b/erpnext/accounts/doctype/budget/budget.json
@@ -188,7 +188,7 @@
    "fieldtype": "Select",
    "label": "Series",
    "no_copy": 1,
-   "options": "BUDGET-.YYYY.-",
+   "options": "BUDGET-.########",
    "print_hide": 1,
    "reqd": 1,
    "set_only_once": 1
@@ -308,7 +308,7 @@
  "index_web_pages_for_search": 1,
  "is_submittable": 1,
  "links": [],
- "modified": "2025-11-06 10:36:35.565701",
+ "modified": "2025-11-17 17:38:27.759355",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Budget",
diff --git a/erpnext/accounts/doctype/budget/budget.py b/erpnext/accounts/doctype/budget/budget.py
index 5bbf8dfc0bd..ad16cf00a9a 100644
--- a/erpnext/accounts/doctype/budget/budget.py
+++ b/erpnext/accounts/doctype/budget/budget.py
@@ -60,7 +60,7 @@ class Budget(Document):
 		distribute_equally: DF.Check
 		distribution_frequency: DF.Literal["Monthly", "Quarterly", "Half-Yearly", "Yearly"]
 		from_fiscal_year: DF.Link
-		naming_series: DF.Literal["BUDGET-.YYYY.-"]
+		naming_series: DF.Literal["BUDGET-.########"]
 		project: DF.Link | None
 		revision_of: DF.Data | None
 		to_fiscal_year: DF.Link
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 7d3296fe327..74f6e8a275b 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -448,4 +448,4 @@ erpnext.patches.v16_0.update_serial_batch_entries
 erpnext.patches.v16_0.set_company_wise_warehouses
 erpnext.patches.v16_0.set_valuation_method_on_companies
 erpnext.patches.v15_0.migrate_old_item_wise_tax_detail_data_to_table
-erpnext.patches.v16_0.migrate_submitted_budgets_to_new_structure
+erpnext.patches.v16_0.migrate_budget_records_to_new_structure
diff --git a/erpnext/patches/v16_0/migrate_submitted_budgets_to_new_structure.py b/erpnext/patches/v16_0/migrate_budget_records_to_new_structure.py
similarity index 76%
rename from erpnext/patches/v16_0/migrate_submitted_budgets_to_new_structure.py
rename to erpnext/patches/v16_0/migrate_budget_records_to_new_structure.py
index d803a852d3f..1c94f0e34bd 100644
--- a/erpnext/patches/v16_0/migrate_submitted_budgets_to_new_structure.py
+++ b/erpnext/patches/v16_0/migrate_budget_records_to_new_structure.py
@@ -3,14 +3,14 @@ from frappe.utils import add_months, flt, get_first_day, get_last_day
 
 
 def execute():
-	submitted_budgets = frappe.get_all("Budget", filters={"docstatus": 1}, pluck="name")
+	budgets = frappe.get_all("Budget", filters={"docstatus": ["in", [0, 1]]}, pluck="name")
 
-	for old_budget in submitted_budgets:
-		old_bud = frappe.get_doc("Budget", old_budget)
+	for budget in budgets:
+		old_budget = frappe.get_doc("Budget", budget)
 
 		old_accounts = frappe.get_all(
 			"Budget Account",
-			filters={"parent": old_bud.name},
+			filters={"parent": old_budget.name},
 			fields=["account", "budget_amount"],
 			order_by="idx asc",
 		)
@@ -19,10 +19,10 @@ def execute():
 			continue
 
 		old_distribution = []
-		if old_bud.monthly_distribution:
+		if old_budget.monthly_distribution:
 			old_distribution = frappe.get_all(
 				"Monthly Distribution Percentage",
-				filters={"parent": old_bud.monthly_distribution},
+				filters={"parent": old_budget.monthly_distribution},
 				fields=["percentage_allocation"],
 				order_by="idx asc",
 			)
@@ -32,16 +32,16 @@ def execute():
 		else:
 			percentage_list = [100 / 12] * 12
 
-		fy = frappe.get_doc("Fiscal Year", old_bud.fiscal_year)
+		fy = frappe.get_doc("Fiscal Year", old_budget.fiscal_year)
 		fy_start = fy.year_start_date
 		fy_end = fy.year_end_date
 
 		for acc in old_accounts:
 			new = frappe.new_doc("Budget")
 
-			new.company = old_bud.company
-			new.cost_center = old_bud.cost_center
-			new.project = old_bud.project
+			new.company = old_budget.company
+			new.cost_center = old_budget.cost_center
+			new.project = old_budget.project
 			new.fiscal_year = fy.name
 
 			new.from_fiscal_year = fy.name
@@ -71,8 +71,8 @@ def execute():
 			]
 
 			for field in fields_to_copy:
-				if hasattr(old_bud, field):
-					new.set(field, old_bud.get(field))
+				if hasattr(old_budget, field):
+					new.set(field, old_budget.get(field))
 
 			start = fy_start
 			for percentage in percentage_list:
@@ -92,11 +92,14 @@ def execute():
 				start = add_months(start, 1)
 
 			new.flags.ignore_validate = True
-			new.flags.ignore_mandatory = True
 			new.flags.ignore_links = True
-			new.flags.ignore_permissions = True
 
 			new.insert(ignore_permissions=True, ignore_mandatory=True)
-			new.submit()
 
-		old_bud.cancel()
+			if old_budget.docstatus == 1:
+				new.submit()
+
+		if old_budget.docstatus == 1:
+			old_budget.cancel()
+		else:
+			old_budget.delete()