Distribution Channel

For delivering the end products and services to the customers, a sales organization will make use of what is called “distribution channel”. A sales organization or a company can have multiple distribution channels. Different products and services might be rendered through distribution channels. In many organizations, they do have a specific strategy to align their business distribution with different distribution channels. A distribution needs to be assigned to a sales organization before its put into use.
Some examples of distribution channels are retail distribution channel, customer specific distribution channel,B2B(business to Business) distribution channel etc.Another point to remember here is that  the material master data belonging to plants and prices could actually differ when it comes to specific sales organization and distribution channel. In other words, minimum quanitiy, minimum price, maximum price, delivering plants, receiving plants etc could differ. Unlike what most think, its not mandatory to create or use the distribution channel in one’s enterprise. It all depends on the enterprise setup plan and key business.

To Create/Define Distribution channel

We can reach the path for creating distribution channel by using the following path in SPRO:

IMG- > Enterprise Structure -> Definition- > Sales and Distribution-> Define/copy, delete, check, distribution channel

One can also access the above path using the transaction OVXI

For Creating new distribution channel, choose the option “Define distribution channel” and add entries to the table content.

 Assigning the distribution channel to sales organization

This can be done using the below path or using the transaction OVXKN/OVXK.

IMG- > Enterprise Structure- > Assignment -> Sales and Distribution -> Assign distribution channel to sales organization

Add the entries and save it as needed and relationship would be then established.