What is distribution rule in SAP IS-AFS-SD - Sales and Distribution?

SAP Term: distribution rule

• Component: IS-AFS-SD

• Component Name: Sales and Distribution

• Description: A principle used to influence how existing stocks in a mult-store order II should be distributed to single stores in the event of a stock shortage. The distribution is possible according to the first in first out principle or the equal distribution principle.

Smart SAP Assistant

• Key Concepts: 
  A distribution rule is a tool used in SAP IS-AFS-SD Sales and Distribution to determine how a sales order should be distributed among different sales organizations, plants, and distribution channels. It is used to ensure that the right products are delivered to the right customers in the right quantities. 
  
  How to use it: 
  The distribution rule is set up in the SAP system and can be used to define the distribution of sales orders among different sales organizations, plants, and distribution channels. The rule can be set up to include criteria such as customer type, product type, and geographical area. The rule can also be used to define the order of priority for each criterion. 
  
  Tips & Tricks: 
  When setting up a distribution rule, it is important to consider the customer’s needs and preferences. For example, if a customer prefers to receive their orders from a certain plant or distribution channel, this should be taken into account when setting up the rule. Additionally, it is important to ensure that the rule is set up correctly so that orders are distributed correctly. 
  
  Related Information: 
  For more information on setting up a distribution rule in SAP IS-AFS-SD Sales and Distribution, please refer to the SAP Help documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up a distribution rule in SAP.