1. Go to Dashboard » WP Timeline » Custom Post Type »
Click on Create New Custom Post Type Button on top.
2. In the tab ‘Custom Post Type’ you have option to create custom post type.
Add Custom Post Type plural name, singular name and add icon for custom post type.
3. In the tab Create Post Type Taxonomy there is the option to create a taxonomy for custom post type.
4. Add Custom Taxonomy Name, slug and same for custom tag, you also have the option to select additional taxonomy for new custom post type.