You assign a distribution channel to a sales organization. The distribution channel, the sales organization and the division constitute the sales area.

A distribution chain is the assignment between a sales organization and a distribution channel, through which the sales organization distributes materials.

A distribution channel may occur in several distribution chains and may be used by several sales organizations to distribute products. A distribution chain is assigned to exactly one sales organization.

You assign one or more plants to a sales organization through a distribution channel. This is done using the distribution chain. A plant is assigned to a distribution chain; the distribution chain can then sell materials from this plant.