Define Distribution Channels
Distribution channels are the next organizational levels in sales and distribution hierarchy, and are just below the sales organization. They are used to specify different distribution methods or channels during SD processes. One distribution channel can be assigned to more than one sales organization meaning that several sales organizations can use the same distribution channel for SD processes. Also, more than one plant can be assigned to a distribution channel meaning that different plants can use the same distribution channels. That also means that material and customer master need to be maintained for every distribution channel since all of the channels might have different sales unit, material group, division and many other information.
In this customizing step you can create a new distributions channel, either completely new or by copying the existing one while inheriting its settings, and also change or delete the existing distribution channels. This is supposed to be the next step after defining your sales organizations, and before you do that you need to fully understand what distribution channel is and which and how many you need to create in order to deploy settings exactly per requirements of your company.