Correct Order of L3 Etherchannel Configuration

If you want to know how to configure L2 etherchannels, please visit here

1. Create the logical interface and issue no switchport command and give an ip address

SW1(config )#int po1
SW1(config-if)#no switchport
SW1(config-if)#ip address 12.12.12.1

2. Go to the physical member interfaces with blank configuration  & issue no switchport command and assign the channel group

SW1(config )#int range e0/0-1

SW1(config-if-range)#no switchport
SW1(config-if-range)#channel-group 1 mode on

Configure SW2 in same manner..

If everything went ok, following outputs will be present.

If it says (RU) it's an L2 etherchannel and it is working in Routed mode. (P) after the member interfaces indicate they are correctly bundled in. Protocol will be a blank because I used unconditionally "on" (neither LACP or PAGP).

Here are the 2 protocols to negotiate etherchannels..

1. LACP (active & passive)
2. PAGP (desirable & auto)

Active and desirable modes start negotiation while passive and auto modes listen only..
As an example, if I used LACP, one side must be considered as active while the other end must be configured as active or passive..

Additional load balancing can be done in global configuration mode.
SW1(config)#port-channel load-balance src-ip