diff --git a/hledger-lib/Hledger/Reports/BudgetReport.hs b/hledger-lib/Hledger/Reports/BudgetReport.hs
index d3604bb31..29b9220a0 100644
--- a/hledger-lib/Hledger/Reports/BudgetReport.hs
+++ b/hledger-lib/Hledger/Reports/BudgetReport.hs
@@ -73,21 +73,19 @@ budgetReport ropts assrt showunbudgeted reportspan d j =
     dbg1 "budgetreport" $ 
     combineBudgetAndActual budgetgoalreport actualreport
 
--- | Select all periodic transactions from the given journal which
--- match the requested report interval, and use them to generate
--- budget transactions (like forecast transactions) in the specified
--- report period (calculated in IO and passed in).
+-- | Use all periodic transactions in the journal to generate 
+-- budget transactions in the specified report period.
+-- Budget transactions are similar to forecast transactions except
+-- their purpose is to set goal amounts (of change) per account and period.
 budgetJournal :: Bool -> ReportOpts -> DateSpan -> Journal -> Journal
-budgetJournal assrt ropts reportspan j =
+budgetJournal assrt _ropts reportspan j =
   either error' id $ journalBalanceTransactions assrt j{ jtxns = budgetts }
   where
-    budgetinterval = dbg2 "budgetinterval" $ interval_ ropts
     budgetspan = dbg2 "budgetspan" $ reportspan
     budgetts =
       dbg1 "budgetts" $
       [makeBudgetTxn t
       | pt <- jperiodictxns j
-      , periodTransactionInterval pt == Just budgetinterval
       , t <- runPeriodicTransaction pt budgetspan
       ]
     makeBudgetTxn t = txnTieKnot $ t { tdescription = T.pack "Budget transaction" }
diff --git a/hledger/hledger_balance.m4.md b/hledger/hledger_balance.m4.md
index 5665dfafe..594e8607d 100644
--- a/hledger/hledger_balance.m4.md
+++ b/hledger/hledger_balance.m4.md
@@ -341,6 +341,7 @@ Balance changes in 2017/11/01-2017/12/31:
 
 Note --budget first arrived in hledger in 1.5 and is still pretty young; 
 join the discussions on mail list and issue tracker to help us refine it.  
+Also, the `-S/--sort-amount` flag is not yet supported with --budget.
 
 For more examples, see [Budgeting and Forecasting](https://github.com/simonmichael/hledger/wiki/Budgeting and forecasting).
 
diff --git a/tests/budget/budget.test b/tests/budget/budget.test
index b4983c989..0ee1997d5 100644
--- a/tests/budget/budget.test
+++ b/tests/budget/budget.test
@@ -125,8 +125,7 @@ Budget performance in 2016/12/01-2016/12/03:
   (b)  1
   (c)  1
 
-# 4. --budget uses only periodic transactions of the specified interval.
-# No interval - same as a regular balance report.
+# 4. --budget with no interval has no effect.
 $ hledger -f- bal --budget
                    2  a
                    2  b
@@ -134,31 +133,31 @@ $ hledger -f- bal --budget
 --------------------
                    6
 
-# 5. With -D it selects the daily budget. 
-# The budget is unbounded, so extends through the report period.
+# 5. Multiple periodic transactions with different intervals are combined. 
+# Budget goals with lower frequency than the report are posted in the 
+# appropriate intermittent periods. 
 $ hledger -f- bal --budget -D
 Budget performance in 2018/01/01-2018/01/03:
 
    ||               2018/01/01                2018/01/02                2018/01/03 
 ===++==============================================================================
  a ||       1 [  10% of    10]        0 [   0% of    10]        1 [  10% of    10] 
- b ||       1                         0                         1                  
- c ||       1                         0                         1                  
+ b ||       1 [   1% of   100]        0 [   0% of     0]        1 [             0] 
+ c ||       1 [   0% of  1000]        0 [   0% of     0]        1 [             0] 
 ---++------------------------------------------------------------------------------
-   ||       3 [  30% of    10]        0 [   0% of    10]        3 [  30% of    10] 
-# TODO misleading totals ? ^
+   ||       3 [   0% of  1110]        0 [   0% of    10]        3 [  30% of    10] 
 
-# 6. And with -W it selects the weekly budget, defined by all weekly periodic transactions.
+# 6. Budget goals with higher frequency than the report get added up appropriately.
 $ hledger -f- bal --budget -W
 Budget performance in 2018/01/01w01:
 
    ||            2018/01/01w01 
 ===++==========================
- a ||       2                  
+ a ||       2 [   7% of    30] 
  b ||       2 [   2% of   100] 
  c ||       2 [   0% of  1000] 
 ---++--------------------------
-   ||       6 [   1% of  1100] 
+   ||       6 [   1% of  1130] 
 
 # 7. A bounded two day budget. The end date is exclusive as usual.
 <