diff --git a/erpnext/setup/doctype/company/company.json b/erpnext/setup/doctype/company/company.json
index d49ae7c..56f60df 100644
--- a/erpnext/setup/doctype/company/company.json
+++ b/erpnext/setup/doctype/company/company.json
@@ -725,7 +725,7 @@
   {
    "fieldname": "default_in_transit_warehouse",
    "fieldtype": "Link",
-   "label": "Default In Transit Warehouse",
+   "label": "Default In-Transit Warehouse",
    "options": "Warehouse"
   },
   {
@@ -740,7 +740,7 @@
  "image_field": "company_logo",
  "is_tree": 1,
  "links": [],
- "modified": "2020-12-03 12:27:27.085094",
+ "modified": "2021-02-16 15:53:37.167589",
  "modified_by": "Administrator",
  "module": "Setup",
  "name": "Company",
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.js b/erpnext/stock/doctype/stock_entry/stock_entry.js
index dfb530b..64dcbed 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.js
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.js
@@ -591,6 +591,7 @@
 
 	add_to_transit: function(frm) {
 		if(frm.doc.add_to_transit && frm.doc.purpose=='Material Transfer') {
+			frm.set_value('to_warehouse', '');
 			frm.set_value('stock_entry_type', 'Material Transfer');
 			frm.fields_dict.to_warehouse.get_query = function() {
 				return {
@@ -601,7 +602,15 @@
 					}
 				};
 			};
-			frappe.db.get_value('Company', frm.doc.company, 'default_in_transit_warehouse', (r) => {
+			frm.trigger('set_tansit_warehouse');
+		}
+	},
+
+	set_tansit_warehouse: function(frm) {
+		if(frm.doc.add_to_transit && frm.doc.purpose == 'Material Transfer' && !frm.doc.to_warehouse) {
+			let dt = frm.doc.from_warehouse ? 'Warehouse' : 'Company';
+			let dn = frm.doc.from_warehouse ? frm.doc.from_warehouse : frm.doc.company;
+			frappe.db.get_value(dt, dn, 'default_in_transit_warehouse', (r) => {
 				if (r.default_in_transit_warehouse) {
 					frm.set_value('to_warehouse', r.default_in_transit_warehouse);
 				}
@@ -968,6 +977,7 @@
 	},
 
 	from_warehouse: function(doc) {
+		this.frm.trigger('set_tansit_warehouse');
 		this.set_warehouse_in_children(doc.items, "s_warehouse", doc.from_warehouse);
 	},
 
diff --git a/erpnext/stock/doctype/warehouse/warehouse.js b/erpnext/stock/doctype/warehouse/warehouse.js
index 1bea00e..1f17250 100644
--- a/erpnext/stock/doctype/warehouse/warehouse.js
+++ b/erpnext/stock/doctype/warehouse/warehouse.js
@@ -3,6 +3,18 @@
 
 
 frappe.ui.form.on("Warehouse", {
+	onload: function(frm) {
+		frm.set_query("default_in_transit_warehouse", function() {
+			return {
+				filters:{
+					'warehouse_type' : 'Transit',
+					'is_group': 0,
+					'company': frm.doc.company
+				}
+			};
+		});
+	},
+
 	refresh: function(frm) {
 		frm.toggle_display('warehouse_name', frm.doc.__islocal);
 		frm.toggle_display(['address_html','contact_html'], !frm.doc.__islocal);
diff --git a/erpnext/stock/doctype/warehouse/warehouse.json b/erpnext/stock/doctype/warehouse/warehouse.json
index 1cc600b..bddb114 100644
--- a/erpnext/stock/doctype/warehouse/warehouse.json
+++ b/erpnext/stock/doctype/warehouse/warehouse.json
@@ -13,6 +13,7 @@
   "column_break_3",
   "warehouse_type",
   "parent_warehouse",
+  "default_in_transit_warehouse",
   "is_group",
   "column_break_4",
   "account",
@@ -230,13 +231,20 @@
   {
    "fieldname": "column_break_3",
    "fieldtype": "Section Break"
+  },
+  {
+   "depends_on": "eval: doc.warehouse_type !== 'Transit';",
+   "fieldname": "default_in_transit_warehouse",
+   "fieldtype": "Link",
+   "label": "Default In-Transit Warehouse",
+   "options": "Warehouse"
   }
  ],
  "icon": "fa fa-building",
  "idx": 1,
  "is_tree": 1,
  "links": [],
- "modified": "2020-08-03 18:41:52.442502",
+ "modified": "2021-02-16 17:21:52.380098",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Warehouse",