diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index 8a1f8c7f697..398a7c67da1 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -74,11 +74,12 @@ class TestStockEntry(unittest.TestCase):
 		from erpnext.stock.doctype.item.test_item import make_item_variant
 		make_item_variant()
 		self._test_auto_material_request("_Test Item")
+		self._test_auto_material_request("_Test Item", material_request_type="Transfer")
 
 	def test_auto_material_request_for_variant(self):
 		self._test_auto_material_request("_Test Variant Item-S")
 
-	def _test_auto_material_request(self, item_code):
+	def _test_auto_material_request(self, item_code, material_request_type="Purchase"):
 		item = frappe.get_doc("Item", item_code)
 
 		if item.variant_of:
@@ -101,6 +102,7 @@ class TestStockEntry(unittest.TestCase):
 		# update re-level qty so that it is more than projected_qty
 		if projected_qty >= template.reorder_levels[0].warehouse_reorder_level:
 			template.reorder_levels[0].warehouse_reorder_level += projected_qty
+			template.reorder_levels[0].material_request_type = material_request_type
 			template.save()
 
 		from erpnext.stock.reorder_item import reorder_item
diff --git a/erpnext/stock/reorder_item.py b/erpnext/stock/reorder_item.py
index bf06396c342..ff943d23d75 100644
--- a/erpnext/stock/reorder_item.py
+++ b/erpnext/stock/reorder_item.py
@@ -114,7 +114,7 @@ def create_material_request(material_requests):
 				mr.update({
 					"company": company,
 					"transaction_date": nowdate(),
-					"material_request_type": request_type
+					"material_request_type": "Material Transfer" if request_type=="Transfer" else request_type
 				})
 
 				for d in items: