New dropdown menus need to be created at the object level. One way is to open an existing record. e.g open the application.

Open an existing record

In the URL, replace the word View with VO and enter. This will take you to the object

Scroll down to the Fields section and click on Add Entry

Give the new dropdown a title in the Caption box

Select as a Lookup and tick 'Is Available for Reporting'. You can also choose the option here if you want to allow multiple values.

Click Save

Click on Add Entry or Add Multiple

Add the required dropdown categories

The dropdown categories are now available in the form for new entries

The method above means that the dropdowns will not be able to be used for any other fields other than that which you have created. The below slides is another means of creating dropdowns that you can apply to any object and field.

Open System Setup and click on the Application Configuration tab

Select Objects>Lookups and open the application you want to create dropdowns for.

Click Add Entry

Give your new dropdown set a title in the Caption field. Select the Application you require the dropdowns to apply to and choose Save

Now scroll down to Lookup values and select Add Multiple

You can enable and Disable as required. These are now available in the chosen object and can also be applied to other objects.