diff --git a/frappe/model/naming.py b/frappe/model/naming.py
index e5f54a5f75..782c88a91d 100644
--- a/frappe/model/naming.py
+++ b/frappe/model/naming.py
@@ -13,8 +13,6 @@ def set_new_name(doc):
 
 	doc._new_name_set = True
 	autoname = frappe.get_meta(doc.doctype).autoname
-	doc.localname = doc.name # for passing back to client
-	doc.name = None
 
 	# amendments
 	if getattr(doc, "amended_from", None):
@@ -24,7 +22,7 @@ def set_new_name(doc):
 		if tmp and not isinstance(tmp, basestring):
 			# autoname in a function, not a property
 			doc.autoname()
-		if doc.name and doc.localname != doc.name:
+		if doc.name:
 			return
 
 	# based on a field
diff --git a/frappe/widgets/form/save.py b/frappe/widgets/form/save.py
index af6890ed96..f1c79d499e 100644
--- a/frappe/widgets/form/save.py
+++ b/frappe/widgets/form/save.py
@@ -9,6 +9,7 @@ def savedocs():
 	"""save / submit / update doclist"""
 	try:
 		doc = frappe.get_doc(json.loads(frappe.form_dict.doc))
+		set_local_name(doc)
 
 		# action
 		doc.docstatus = {"Save":0, "Submit": 1, "Update": 1, "Cancel": 2}[frappe.form_dict.action]
@@ -50,3 +51,15 @@ def send_updated_docs(doc):
 		d["localname"] = doc.localname
 
 	frappe.response.docs.append(d)
+
+def set_local_name(doc):
+	def _set_local_name(d):
+		if d.get('__islocal'):
+			d.localname = d.name
+			d.name = None
+
+	_set_local_name(doc)
+	if doc.get('__islocal'):
+		for child in doc.get_all_children():
+			_set_local_name(child)
+