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How to Define Distribution Channel in SAP

How to create distribution channel in SAP SD

In this SAP tutorials, you will learn how to define distribution channel in SAP SD step by step. In previous tutorials we have learned how to create sales organization in SAP.

Distribution channels determines through which channel products and services of an organization to reach the customers.

Distribution channel SAP implementation process

Distr. ChannelName
16Retail
20Cash Sales
21Whole Sales
24Online Sales
26Trader
50Direct Sale

You can define new distribution channel in SAP by using any of the navigation method.

  • Transaction code: – OVXI
  • Menu Path: – SPRO -> SAP IMG -> Enterprise Structure –> Definition –> Sales and Distribution –> Define copy, delete, check distribution channel.

define distribution channel menu path

Step 1) Enter T-code “OVXI” in the SAP command field as shown below and press enter to continue.

SAP Transaction code OVXI

Step 2) On change view distribution channel overview screen, click on new entries button to create a new distribution channels in SAP as per the organizational requirements.

Create new distribution channel in SAP

Step 3)- On new entries screen, update the following details.

  • Distr.Channel: – Enter the two digits key that identifies the distribution channel in SAP.
  • Name: –  Update the descriptive text of distribution channel.

Create Distribution Channel in SAP

Step 4) After maintaining the required details, click on save button and save the configured details.

Successfully we have defined new distribution channels in SAP systems.