diff --git a/erpnext/manufacturing/doctype/work_order/work_order.js b/erpnext/manufacturing/doctype/work_order/work_order.js
index b0849e05fe0..01cda8c107d 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.js
+++ b/erpnext/manufacturing/doctype/work_order/work_order.js
@@ -552,6 +552,13 @@ frappe.ui.form.on("Work Order", {
 		erpnext.work_order.calculate_cost(frm.doc);
 		erpnext.work_order.calculate_total_cost(frm);
 	},
+
+	skip_transfer: function (frm) {
+		if (frm.doc.skip_transfer && !frm.doc.from_wip_warehouse) {
+			frm.set_value("wip_warehouse", null);
+			frm.refresh_field("wip_warehouse");
+		}
+	},
 });
 
 frappe.ui.form.on("Work Order Item", {
diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index 7b5d796e50d..ae4af352d87 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -170,6 +170,7 @@ class WorkOrder(Document):
 		self.validate_sales_order()
 		self.set_default_warehouse()
 		self.validate_warehouse_belongs_to_company()
+		self.check_wip_warehouse_skip()
 		self.calculate_operating_cost()
 		self.validate_qty()
 		self.validate_transfer_against()
@@ -269,6 +270,10 @@ class WorkOrder(Document):
 		if not self.fg_warehouse:
 			self.fg_warehouse = frappe.db.get_single_value("Manufacturing Settings", "default_fg_warehouse")
 
+	def check_wip_warehouse_skip(self):
+		if self.skip_transfer and not self.from_wip_warehouse:
+			self.wip_warehouse = None
+
 	def validate_warehouse_belongs_to_company(self):
 		warehouses = [self.fg_warehouse, self.wip_warehouse]
 		for d in self.get("required_items"):