Distribution Channel of mySAP

November 24, 2009 by CRM
Filed under: Sale and Distribution 


A distribution channel is a means through which salable materials or services reach the customer. It represents your strategies to distribute goods or services to your customer. Wholesale trade, Retail trade, Internet trade, for example.

Distribution channels can be set up according to your company’s market strategy or internal organization. Customers can be served through one or more distribution channels within a sales organization.

In addition, you can vary the master data relevant to sales, such as customer master data, sales master data, prices, and surcharges/discounts, for each sales organization and distribution channel.

Several distribution channels can be assigned to a sales organization in SAP system. If you use the mySAP Sales and Distribution module, you need at least one distribution channel in your SAP system.

For example, it is used to:

  • Define responsibilities,
  • Achieve flexible pricing and
  • Differentiate sales statistics.

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2 Comments on Distribution Channel of mySAP

    [...] Distribution channels provide a general structure for distributing goods. Wholesale trade, sales to industrial customers or direct sales from a plant are typical examples of distribution channels. You can use different distribution channels in Sales and Distribution to provide the market with the best possible service. [...]

    [...] Add comments A sales area in SAP SD module is a combination of the sales organization, distribution channel, and division. It defines the distribution channel a sales organization uses to sell products from [...]

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