Each business transaction in sales is linked with a distribution channel that is usually derived from data in the sales document header.

You may use distribution channels to segment markets, for example, to separate sales activities for high-price and low-price segments or specify customers’ procurement rights for the segment in question (protecting the corporate image).

You may create master data for each distribution channel, for example:

• Customers, materials

• Specific conditions and pricing

If you have several distribution channels, you may use a reference distribution channel to help reduce the maintenance required for master data.

A sales organization may market materials through different distribution channels.

• You assign distribution channels to sales organizations in Customizing.

• You use distribution channels to create sales areas (to refine the external organizational sales structure).

You may use a distribution channel to assign to a sales organization one or more plants that are authorized for sales.

• The sales organization may sell goods from assigned plants. You may assign plants across company codes.
• Each plant may be assigned to several sales organizations. All assigned sales organizations may sell goods from a specific plant.

For more information, see: