Moazzam,
For the particular type of movement of goods, the correct movement type needs to be setup (in schedule line category) SAP does not have any inherent intelligence to permit or restrict this looking in to the item category or the sales document type. Take an example of third party sale, CS should not have any movement type, but you could assign a movement type there.
Please check the MMBE update, the stock should increase in unrestricted because of 653, even though the process is OTC (forward cycle).
What are the item category and schedule line category used by you?
The process design is setup by the document category, for order type, forward cycle with C and return cycle with H.similarly for delivery and billing process steps too.
TW