Hi,
Let me explain with an illustration. Assume your company has a branch office with several sales executives. While most of them handle retail channels, there could be one person handling institutional sales and another focusing on large business units only.
Administratively, all the people operating from the branch will report to the branch head, who is in charge of the branch administratively but is functionally in charge of the retail sales team. Additionally, he is also administratively in charge of the other sales personnel, such as leave approvals, expense reimbursements, and office facility usage. However, the functional reporting of the two institutional sales personnel could be at the head office or regional office, where they would report to their cluster head or divisional head regarding leads, cold calls, orders, targets, etc.
I trust that the subject has been sufficiently clarified.
Regards,