diff --git a/erpnext/controllers/subcontracting_controller.py b/erpnext/controllers/subcontracting_controller.py
index c6daf7ead01..33c1edbcb72 100644
--- a/erpnext/controllers/subcontracting_controller.py
+++ b/erpnext/controllers/subcontracting_controller.py
@@ -610,7 +610,9 @@ class SubcontractingController(StockController):
 			and self.doctype != "Subcontracting Inward Order"
 		):
 			row.reserve_warehouse = self.set_reserve_warehouse or item.warehouse
-		elif frappe.get_cached_value("Item", row.rm_item_code, "is_customer_provided_item"):
+		elif frappe.get_cached_value("Item", row.rm_item_code, "is_customer_provided_item") and self.get(
+			"customer_warehouse"
+		):
 			row.warehouse = self.customer_warehouse
 
 	def __set_alternative_item(self, bom_item):