diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index 0735133de3f8..81673856f769 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -146,7 +146,7 @@ def check_sales_order_on_hold_or_close(self):
 			frappe.throw(_("Sales Order {0} is {1}").format(self.sales_order, status))
 
 	def set_default_warehouse(self):
-		if not self.wip_warehouse:
+		if not self.wip_warehouse and not self.skip_transfer:
 			self.wip_warehouse = frappe.db.get_single_value(
 				"Manufacturing Settings", "default_wip_warehouse"
 			)