diff --git a/lib/redmine_contracts/budget_plugin_migration.rb b/lib/redmine_contracts/budget_plugin_migration.rb
index 62ff085..4a7c449 100644
--- a/lib/redmine_contracts/budget_plugin_migration.rb
+++ b/lib/redmine_contracts/budget_plugin_migration.rb
@@ -84,6 +84,18 @@ module RedmineContracts
 
           end
 
+          if old_deliverable['materials'].present? && old_deliverable['materials'] > 0.0
+            deliverable.overhead_budgets << OverheadBudget.new(:deliverable => deliverable,
+                                                               :budget => old_deliverable['materials'],
+                                                               :hours => 0)
+          elsif old_deliverable['materials_percent'].present? && old_deliverable['materials_percent'] > 0.0
+            materials = @total * (old_deliverable['materials_percent'].to_f / 100)
+            deliverable.overhead_budgets << OverheadBudget.new(:deliverable => deliverable,
+                                                               :budget => materials,
+                                                               :hours => 0)
+
+          end
+
           deliverable.notes += "Converted data:\n<pre>" + old_deliverable.pretty_inspect + "</pre>"
           
           deliverable.save!
diff --git a/test/fixtures/budget_plugin_migration/budget.yml b/test/fixtures/budget_plugin_migration/budget.yml
index 5bb71a3..52129b3 100644
--- a/test/fixtures/budget_plugin_migration/budget.yml
+++ b/test/fixtures/budget_plugin_migration/budget.yml
@@ -31,7 +31,7 @@
   profit: 
   overhead_percent: 150
   description: ""
-  materials_percent: 
+  materials_percent: 10
   due: 2008-06-18
   budget: 900.0
   client_signoff: false
diff --git a/test/integration/budget_plugin_migration_test.rb b/test/integration/budget_plugin_migration_test.rb
index 53b153a..ac94c94 100644
--- a/test/integration/budget_plugin_migration_test.rb
+++ b/test/integration/budget_plugin_migration_test.rb
@@ -60,13 +60,13 @@ class BudgetPluginMigrationTest < ActionController::IntegrationTest
     end
 
     should "create a new Overhead Budget record for any overhead" do
-      assert_difference("OverheadBudget.count", 3) do
+      assert_difference("OverheadBudget.count", 5) do
         RedmineContracts::BudgetPluginMigration.migrate(@data)
       end
 
       d = Deliverable.find_by_title("Deliverable One")
-      assert_equal 1, d.overhead_budgets.count
-      assert_equal 200, d.overhead_budget_total
+      assert_equal 2, d.overhead_budgets.count
+      assert_equal 400, d.overhead_budget_total
 
       overhead = d.overhead_budgets.first
       assert overhead
@@ -75,7 +75,7 @@ class BudgetPluginMigrationTest < ActionController::IntegrationTest
     end
 
     should "create a new Overhead Budget record for any overhead percent" do
-      assert_difference("OverheadBudget.count", 3) do
+      assert_difference("OverheadBudget.count", 5) do
         RedmineContracts::BudgetPluginMigration.migrate(@data)
       end
 
@@ -90,6 +90,35 @@ class BudgetPluginMigrationTest < ActionController::IntegrationTest
 
     end
 
+    should "create a new Overhead Budget record for any materials" do
+      assert_difference("OverheadBudget.count", 5) do
+        RedmineContracts::BudgetPluginMigration.migrate(@data)
+      end
+
+      d = Deliverable.find_by_title("Deliverable One")
+      assert_equal 2, d.overhead_budgets.count
+      assert_equal 400, d.overhead_budget_total
+
+      materials = d.overhead_budgets.last
+      assert materials
+      assert_equal 200, materials.budget
+      assert_equal 0, materials.hours
+    end
+
+    should "create a new Overhead Budget record for any overhead percent" do
+      assert_difference("OverheadBudget.count", 5) do
+        RedmineContracts::BudgetPluginMigration.migrate(@data)
+      end
+
+      d = Deliverable.find_by_title("Deliverable 2")
+      assert_equal 2, d.overhead_budgets.count
+      materials = d.overhead_budgets.last
+      assert materials
+      assert_equal 12 * 25 * 0.1, materials.budget
+      assert_equal 0, materials.hours
+
+    end
+
     should "append the YAML dump of the old object to the notes" do
       RedmineContracts::BudgetPluginMigration.migrate(@data)
       d = Deliverable.find_by_title("Deliverable One")