Companies may request new movement types to differentiate between inventory posting transactions. To create a new movement type: select an existing type, copy it and overwrite the code with the new one, then click "Copy All". Select the new movement type and fill in its reversal type to define the posting process. This allows companies to categorize transactions like internal and external scrap separately.

1. How to create movement type
SPRO->Logistics Execution->Warehouse Management->Activities->Transfers->Define Movement Types
How to create movement types? What are the steps involved? When will you
recommend a new movement type?
Companies may request a new movement type to differentiate between the inventory
posting transaction. For example, 551 scrap movement type. Some company may
request to have it as 551 for Internal Scrap and Z51 for External Scrap.
Copy, Change Movement Types
4.6x
Assuming I want to create another movement type Z01.
Transaction OMJJ
 Select the standard movement type 201
 Click copy, then overwrite the 201 with Z01
 Click the Enter button, then click Copy all
 Select the new movement type Z01
 On the left hand column screen, click Reversal/follow-on movement
 Fill in the reversal movement type