Distribution Channels define the ways through which products or services reach customers (e.g., wholesale, retail, direct-to-customer). Defining common distribution channels helps reduce redundant data entry when multiple sales organizations share similar distribution methods.

Defining common distribution channels in SAP is a crucial step in minimizing data redundancy and ensuring efficient sales organization management. This process allows you to share master data, such as customer or material master records, across multiple distribution channels within the same sales organization. Here’s an optimized guide to understanding and configuring this functionality in SAP.

Common Distribution Channel Example

  1. 01: Wholesale
  2. 02: Retail
  3. 03: Online Sales

Instead of creating separate customer master data for each channel, you can define “01” (Wholesale) as a common distribution channel. This ensures that the same customer master data is valid for channels “02” (Retail) and “03” (Online), eliminating duplication and saving time.

Steps to Define Common Distribution Channels

  1. Go to SPRO > Sales and Distribution > Master Data > Define Common Distribution Channels.
  2. Select New Entries.
  3. Enter the distribution channels you want to define (e.g., 01 for Wholesale, 02 for Retail).
  4. Save your entries.
Steps to Define Common Distribution Channels