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distribution chain & channel

Former Member
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hi folks,

what is the exact meaning of abv terms ?

and what is the hierarchy in SD module ?


Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Distribution Channel:

A channel through which saleable materials or services reach customers.

Distribution channels include wholesale, retail, and direct sales. You can assign a distribution channel to one or more sales organizations.

Distribution Chain:

It is a term in SAP Retail

A combination of sales organization and distribution channel.

Distribution chains are assigned to different company codes.


A mapping of a structure that satisfies specific rules.

The structure elements of a hierarchy are called nodes.

There is only one top-level node.

Only one node is assigned directly above each node (apart from the top-level node).

Several nodes may be assigned directly below a node.

Nodes that do not have any nodes assigned below them are called end nodes.

There are 2 types of hierarchies Customer and Product in SAP.



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