G Lakshmipathi,
I appreciate you giving us some business related perspective! Thank you!
The OP's question is whether to create a Division or a distribution channel.
Furthermore, depending upon settings; new pricing procedure is not mandatory, if new division is created.
The new division could be at item level in the sales order.
Also, for separate financial postings, configuration of new pricing procedure is not mandatory.
Financial postings can be accomplished with Material account assignment group. (among many other alternatives).