diff --git a/app/controllers/deliverables_controller.rb b/app/controllers/deliverables_controller.rb
index 9e56b73..e399f9c 100644
--- a/app/controllers/deliverables_controller.rb
+++ b/app/controllers/deliverables_controller.rb
@@ -14,6 +14,7 @@ class DeliverablesController < InheritedResources::Base
   end
 
   def create
+    remove_empty_budget_items(params)
     @deliverable = begin_of_association_chain.deliverables.build(params[:deliverable])
     if params[:deliverable] && params[:deliverable][:type] && Deliverable.valid_types.include?(params[:deliverable][:type])
       @deliverable.type = params[:deliverable][:type]
@@ -24,6 +25,7 @@ class DeliverablesController < InheritedResources::Base
   def update
     @deliverable = begin_of_association_chain.deliverables.find_by_id(params[:id])
     params[:deliverable] = params[:fixed_deliverable] || params[:hourly_deliverable] || params[:retainer_deliverable]
+    remove_empty_budget_items(params)
     update!(:notice => l(:text_flash_deliverable_updated, :name => @deliverable.title)) { contract_url(@project, @contract) }
   end
 
@@ -75,4 +77,27 @@ class DeliverablesController < InheritedResources::Base
     period
   end
 
+  # Remove empty budgets. Will prevent validation errors
+  # from empty fields submitted from the bulk adding form.
+  #
+  # LSS Clients #6714
+  def remove_empty_budget_items(params)
+    params["deliverable"]["labor_budgets_attributes"].reject! {|key, b| budget_item_empty?(b) }
+    params["deliverable"]["overhead_budgets_attributes"].reject! {|key, b| budget_item_empty?(b) }
+    params["deliverable"]["fixed_budgets_attributes"].reject! {|key, b| fixed_budget_item_empty?(b) }
+  end
+
+  def budget_item_empty?(item)
+    (item["time_entry_activity_id"].blank?) &&
+      (item["hours"].blank? || item["hours"].to_f == 0.0) &&
+      (item["budget"].blank? || item["budget"].gsub('$','').to_f == 0.0)
+  end
+
+  def fixed_budget_item_empty?(item)
+    (item["title"].blank?) &&
+      (item["budget"].blank? || item["budget"].gsub('$','').to_f == 0.0) &&
+      (item["markup"].blank? || item["markup"].gsub('$','').to_d == 0.0)
+
+  end
+  
 end
diff --git a/test/integration/deliverables_edit_test.rb b/test/integration/deliverables_edit_test.rb
index 0f5f155..720323d 100644
--- a/test/integration/deliverables_edit_test.rb
+++ b/test/integration/deliverables_edit_test.rb
@@ -118,6 +118,34 @@ class DeliverablesEditTest < ActionController::IntegrationTest
     assert_equal 1000.0, @overhead_budget.budget
   end
 
+  should "not create new budget items for the deliverable if the activity, hours, and dollars are not all blank" do
+    TimeEntryActivity.destroy_all
+    visit_contract_page(@contract)
+    click_link_within "#deliverable_details_#{@hourly_deliverable.id}", 'Edit'
+    assert_response :success
+    assert_template 'deliverables/edit'
+
+    within("#deliverable-labor") do
+      fill_in "hrs", :with => ''
+      fill_in "$", :with => '$0'
+    end
+
+    within("#deliverable-overhead") do
+      fill_in "hrs", :with => '0'
+      fill_in "$", :with => ''
+    end
+
+    click_button "Save"
+
+    assert_response :success
+    assert_template 'contracts/show'
+
+    @hourly_deliverable.reload
+    assert_equal 0, @hourly_deliverable.labor_budgets.count
+    assert_equal 0, @hourly_deliverable.overhead_budgets.count
+    assert_equal 0, @hourly_deliverable.fixed_budgets.count
+  end
+
   should "show allow editing the Deliverable Finances section for each Retainer period" do
     @retainer_deliverable = RetainerDeliverable.spawn(:contract => @contract, :manager => @manager, :title => "Retainer")
     @retainer_deliverable.labor_budgets << @labor_budget = LaborBudget.spawn(:deliverable => @retainer_deliverable, :budget => 1000, :hours => 10)
@@ -476,8 +504,8 @@ class DeliverablesEditTest < ActionController::IntegrationTest
     assert_equal [100, nil, nil], @retainer_deliverable.overhead_budgets.collect(&:hours)
     assert_equal [100, nil, nil], @retainer_deliverable.overhead_budgets.collect(&:budget)
 
-    assert_equal 3, @retainer_deliverable.fixed_budgets.count
-    assert_equal [600, nil, nil], @retainer_deliverable.fixed_budgets.collect(&:budget)
+    assert_equal 1, @retainer_deliverable.fixed_budgets.count
+    assert_equal [600], @retainer_deliverable.fixed_budgets.collect(&:budget)
   end
 
   context "locked deliverable" do
diff --git a/test/integration/deliverables_new_test.rb b/test/integration/deliverables_new_test.rb
index 37dae03..6ea2e6e 100644
--- a/test/integration/deliverables_new_test.rb
+++ b/test/integration/deliverables_new_test.rb
@@ -278,4 +278,50 @@ class DeliverablesNewTest < ActionController::IntegrationTest
     
   end
 
+  should "not create new budget items for the deliverable if the activity, hours, and dollars are all blank" do
+    @manager = User.generate!
+    @role = Role.generate!
+    User.add_to_project(@manager, @project, @role)
+    TimeEntryActivity.destroy_all
+    
+    visit_contract_page(@contract)
+    click_link 'Add New'
+    assert_response :success
+
+    within("#deliverable-details") do
+      fill_in "Title", :with => 'A New Deliverable with blanks'
+      select "Hourly", :from => "Type"
+      select @manager.name, :from => "Manager"
+    end
+
+    within("#deliverable-labor") do
+      # no activity selected
+      fill_in "hrs", :with => ''
+      fill_in "$", :with => '$0'
+    end
+
+    within("#deliverable-overhead") do
+      # no activity selected
+      fill_in "hrs", :with => '0'
+      fill_in "$", :with => ''
+    end
+
+    within("#deliverable-fixed") do
+      fill_in "title", :with => ''
+      fill_in "budget", :with => '$0'
+      fill_in "markup", :with => ''
+    end
+    
+    click_button "Save"
+
+    assert_response :success
+    assert_template 'contracts/show'
+
+    @deliverable = Deliverable.last
+    assert_equal "A New Deliverable with blanks", @deliverable.title
+    assert_equal 0, @deliverable.labor_budgets.count
+    assert_equal 0, @deliverable.overhead_budgets.count
+    assert_equal 0, @deliverable.fixed_budgets.count
+  end
+  
 end