Distribution
The Distribution module manages a whole distribution network: channel partners, transactions, logistics, collections, credit control, returns and claims, schemes, targets, field force, the retailer portal, secondary sales and merchandising.
Why and when you use it
A growing distributor or brand deals with many partners at different levels, such as distributors, wholesalers and retailers, each with its own credit limit, schemes and targets. This module keeps all of that in one place, alongside your normal billing. The owner and sales manager set it up; the accounts and field teams use the tabs that concern them.
Before you start
- Customers and products set up (Customers, Inventory)
- Routes created (Routes)
- Salesmen added (Salesmen)
Step by step
- Open Distribution and add channel partnersOpen Distribution from the sidebar. On the Channel Partners tab use Create Channel Partner. The list shows Partner Name, Channel Type, Code, Name, Type, Route, Contact, GSTIN and Credit limit.
- Set credit limits (Credit Control)Give each partner a credit limit and use the Credit Control tab to watch partners who are near or over it.
- Follow transactions and logisticsUse the Transactions tab for the business done with partners and the Logistics tab for moving goods to them.
- Track collectionsUse the Collections tab to see money due from and received from partners.
- Handle returns and claimsUse Returns & Claims for goods coming back from partners and claims against them or by them.
- Run schemes and set targetsSet up offers in Schemes & Promotions and partner or team targets in Targets.
- Manage the field force and merchandisingUse Field Force for your salesmen in the market, and Merchandising for display and in-store work at retailers.
- Open the retailer portal and record secondary salesRetailer Portal covers what retailers see and order. Secondary Sales records sales your partners make onward to retailers, so you see real market demand, not just what you sold to the distributor.
Worked example
Sharma Traders appoints a sub-distributor in Sanganer, Shree Ganesh Agencies, with a credit limit of ₹2,00,000, and runs a Diwali scheme on tea.
- On Channel Partners, Create Channel Partner: Shree Ganesh Agencies, Channel Type chosen for a sub-distributor, Route Sanganer, GSTIN 08AAGFS2290L1Z8, Credit limit ₹2,00,000.
- In Schemes & Promotions, set up the Diwali tea scheme for the season.
- In Targets, set Shree Ganesh Agencies' monthly target.
- Each week, check Credit Control: the partner owes ₹1,72,000, close to the limit, so the next order waits for a payment.
- At month end, look at Secondary Sales to see how much tea Shree Ganesh Agencies sold on to its retailers.
Result: The owner sees the partner's credit, scheme, target and onward sales in one module, and stops supply before the partner crosses its credit limit.
💡 Tips
- Start with Channel Partners and Credit Control; add schemes and targets once the basics are in daily use.
- Fill GSTIN and Route for every partner so billing and route planning stay correct.
- Compare primary sales (what you sold) with Secondary Sales to spot stock piling up at a partner.
⚠️ Common mistakes
- Setting credit limits but never checking Credit Control. Review it weekly.
- Running a scheme without an end date in mind, so it carries on by mistake. Plan the period before you start.
Questions
How is this different from the Distribution Desk?
The Distribution Desk is the daily desk for collections, approvals and day close. The Distribution module manages the partner network: partners, credit, schemes, targets and secondary sales.
What are secondary sales?
Sales made by your distributors or wholesalers to the next level, usually retailers. Your own sales to the distributor are primary sales.
🎬 Video walkthrough (script — recording coming soon)
- Scene 1: Open Distribution and walk across the tabs.
- Scene 2: Create Channel Partner for Shree Ganesh Agencies with a ₹2,00,000 limit.
- Scene 3: Show Credit Control with the partner near its limit.
- Scene 4: Set up the Diwali scheme in Schemes & Promotions.
- Scene 5: Set the partner's target in Targets.
- Scene 6: Open Secondary Sales and explain primary versus secondary.
- Scene 7: Mention Retailer Portal, Field Force and Merchandising.