What is Distribution Channel in SAP SD

Distribution Channel refers to the channel of distributing the Goods/materials to the customers. Examples of distribution channels are Direct sales, dealers, Distributors, trade sales, etc.

  • SAP SD consultants are responsible for defining the distribution channels
  • It is a two-digit alphanumeric key.

Define Distribution Channel in SAP

This tutorial guides you on how to create a Distribution channel in SAP SD

Steps to Create a Distribution Channel

IMG Menu Path:-

  • SPRO > Customizing Implementation Guide > Enterprise Structure > Definition > Sales and Distribution > Define, copy, delete, check Distribution channel
  • Transaction code: OVXI

Step 1:

Enter T Code SPRO in the Command field and press enter from the keyboard

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Step 2:

Click on SAP Reference IMG

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Step 3:

Follow the IMG menu path as per the below screenshot to define the distribution channel.
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Step 4:

Click on Define, copy, delete, check Distribution channel, a pop-up window will be displayed, and select a Distribution channel.

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Step 5:

In the next screen, change the view distribution channels overview screen, and click on new entries to create a new distribution channel. 

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Step 6:

Enter the Distribution channel key in the Distr. Channel field and give the name of the distribution channel.

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Step 7:-

Click on the save icon to save the configuration settings

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Thus, a distribution channel was successfully created in SAP SD.