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I have a military document given to me to scan by a relative. It is the original military document.
How do I go about adding a Source / Citation for such media?
My tree lives on Ancestry and I have asked questions before about creating sources. So it is not all alien to me but in this case do I simply create a repository with the persons name or some other way? Eg:
The basic principle from Elizabeth Shown Mills' Evidence Explained is to cite what you actually used.
There are numerous examples on the Evidence Explained website about citing a document that is held in private hands that you could use as an example. My quick search turned up a WW2 military record from the United States:
Citing personally held WWII Military Documents
Evidence Explained is US-centric, so I understand why researchers outside the US might not find it to be an essential reference work, but I do like Elizabeth Shown Mills' Quicksheet: Your Stripped Bare Guide to Citing Sources. It's a compact, portable summary of what information we need to capture for writing a citation for various types of material; the back side of the sheet is a form which may be photocopied for gathering informtion when you find a source.
In the Quicksheet, Mills says to ask first "What am I holding?" and then to ask "Who? What? When Where?". She also says to ask "Why should I believe it?". I would also ask "How was it created?"
In research notes, include:
I have seen citations where, in place of listing the document owner's address, it says [address redacted] or [privately held]. Do not include your relative's address in a published citation unless you have their permission to do so.
In this case, you may need a layered citation. Your relative has a document, and you have a scan. The citation should make clear what you actually saw. Cite the document as you regularly would, but make it clear that you have an image copy provided to you by your relative and not the original document.
These links from the Evidence Explained website may also be helpful:
If you can't come up with a satisfactory solution, try looking for publications that cite similar documents and see what format the authors used to cite their documents (keeping in mind that different publications may have different standards). Use research guides (for England and Wales, make use of guides at TNA) if needed. If you're still at a loss, ask a genealogist who regularly uses the same kinds of military records what they would use as a citation. You will get a more precise answer if you specify which document you have on hand.
Bear in mind the end goal of writing a citation is not just to show where another genealogist might find the record. 
Mills says (screenshot from page 10 of Evidence Explained, ebook of the 2nd edition; the same statement is on page 8 of the 3rd revised edition):
We identify our sources—and their strengths and weaknesses—so we can reach the most reliable conclusions.We identify our sources—and their strengths and weaknesses—so we can reach the most reliable conclusions.
My problem is concerning the idea of storing all ones family research and archive on internet sites. Working professionally I have never done this.The true value of submitted trees find doubtful as so many are inaccurate.
The view of my clients is that they want a hard copy that they can keep and study and show.
How to record sources ?
I used to record comprehensive lists of source material but found the finished project looked extremely dull and un interesting for my clients.
So, I now print images of my archive material using a laser printer for economy. Everything is printed showing source on transcripts as well as images. I no longer need to take lengthy notes whilst researching. At a later point I type my notes and explanations into my software and the client gets a copy of all the software results and printed source material.
I have been working like this for 15 years and produced,with my team, over 1000 projects, some running to as many as 8 binders. The clients are overjoyed with the results and an historian once asked me did I realise that my work is so comprehensive that historians of the future could well refer to it.
I will never be convinced that storing your hard done research electronically is the wises thing, but I also do this as backup.
