Hi Akhil,
If you are trying to move stock into a storage type based on the movement type, the storage type should be declared at the destination and if possible use a fixed bin for your scenario. I am not sure how system would behave while creating a dynamic TO for non-interim storage types.
Below are few screenshots of a scenario:
Had since you want to use a SMI, you have to define a search strategy based on the regular indicator, reference movement type and SMI.
Regards,
Sumanth