Delivery is the process of transporting goods. Most goods
are delivered through a transportation network. Cargo
(physical goods) are primarily delivered via roads and
railroads on land, shipping lanes on the sea and airline
networks in the air.

In SAP SD it is of two Type. One is INBOUND & other is
OUTBOUND delivery. For out bound delivery we suppose to
deliver ordering quantity of proposed goods, after outbound
delivery the shipping, billing process has been started. But
In bound delivery creates for an existing returns. 

T-code for creating a delivery is "VL01".

After the order, we need to check the availability of
ordering quantity, confirm the availability, pick the
proposed quantity & pack those, Load those quantities. After
delivery stock will reduces from the store. Till this is
called goods issue. For outbound delivery we need to do PGI
& for in bound it is PGR (Post goods receipt)

The shipment is the freight being transported, which
includes the hazardous material contents and the containment
system (box, tank truck, fitting, valves, lids, labels,
etc.) described in the shipping documents
  
For post goods issue the shipment procedure must be
completed. Goods Issue is the process to check the
availability & confirm up to packing. And shipment is the
process / arrangement to lift those goods to the partners
place by confirming the shipping point & mode of
transportation. 

Proof of delivery is a method to establish the fact that the
recipient received the contents sent by the sender. Or A
receipt showing date and place of delivery to consignee, and
the signature of the person receiving the shipment.

Direct Selling is the sale of a consumer product or service,
person-to-person, away from a fixed retail location. These
products and services are marketed to customers by
independent salespeople. Depending on the company, the
salespeople may be called distributors, representatives,
consultants or various other titles. Products are sold
primarily through in-home product demonstrations, parties
and one-on-one selling.

Distribution channel is the route by which a product or
service is moved from a producer or supplier to customers. A
distribution channel usually consists of a chain of
intermediaries, including wholesalers, retailers, and
distributors, that is designed to transport goods from the
point of production to the point of consumption in the most
efficient way.

While assigning the company to sales area if we want direct
sale then no need of the distribution channel to assign in
the sales area. If we need it then we can assign.

Well i do agree with Aditya, but just want to put my view 
about direct sale and dist chnl..direct sales itself is a 
channel through which the product or the service reaches to 
the consumer/customer...whereas dist chnl. as a whole is 
group of channels, like for ex: wholesale, retail etc..so 
direct sale is a type of dist. chnl.
Correct me if i'm wrong.

As the fact already stated that direct sales is also a 
distribution channel, thus as a rule of thumb, this must be 
assigned to sales organisation.

Hi Guys

From the answers i got to know that there is no process 
separately called as delivery. it means picking, packing & 
loading, after  which goods issue is done.
So to put in nutshell, it is 
sale order creation
sale order processing
picking
packing/ shipping
loading
goods issue
invoice.

correct me if i am wrong.

Also the distribution channel sales.

The point i was interested was about how the actual sales 
process  in this network

By that i mean, based onm the type of the agreement with ur 
distributor/whole saler/ retailer or all the three, either 
on goods issue itslef the ownership transfer takes place 
and billing is done to the channel partner as customer.

it is upto the channel partners for selling the same.

Otherwise, after goods issue, ownership transfer will not 
take place, only after actual sales from the channel 
partner to the end consumer, when the partner produces the 
invoice( sent to the end consumer)to the manufacturer, will 
the manufacturer invoice the channel partner.
something which is similar to consignment sales, after 
producing the consumption report, the system will allow you 
to raise invoice on the customer/channel partner( 
warehouse).


Example of the aabove scenario is T.V showroom/ or car show 
room, where all the different companies T.V will be kept in 
their showroom, once the consumer buys the same, invoice 
will be raised simulataneously on the consumer & 
manufacturer.

Upon which the manufacturer will pay th amount to 
distribution channel( actual amt sold by the channel 
partner minus handling charges) -