The first meaning of Movement type is nothing but the way of material moving from one place to another.
In SAP terminlogy A material document and a finacial document is created with automatically.. U will be using this Movement type when ever u receive the material in your plant. i.e. MIGO
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Movement type is to differentiate between the various goods movements.
Some of the goods movement are
261 Goods Issue for Prod Order
101 Goods receipt for Prod order/Purchase order
Goods movement has many control functions attached to it
Material/Accounting documents are generated
It updates the quantity fields
It updates the stock & consumption accounts
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