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Difference Between ERP and POS System

Difference Between ERP and POS System

When we were kids, we often wondered about things that seemed similar but were actually different, like games, foods, and even people. It would take some learning and information to figure out the distinctions. I remember being confused about hockey and ice hockey, as well as tennis and table tennis. I used to mix them up when talking to my friends until I learned the specifics of each game.

Similarly, many business owners today face a common confusion about understanding the difference between ERP and POS systems. Just like our childhood confusion, gaining a clear understanding of these two business tools is essential for making informed decisions.

Isn’t it the same? Did you immediately think of this? Yes! More than 90% of people believe so. It’s not just ERP POS or even ERP and POS. It’s always ERP Vs. POS. But the difference between ERP & POS systems is a big topic to talk about, and they both serve different purposes. It’s like a maze puzzle where you keep getting back to the same spot. Don’t worry, though. I’ll help you find the way out.


The difference between POS software and other business management systems like ERP is important. POS software is mainly used by businesses that interact directly with customers who visit their physical stores. It’s perfect for retailers who sell products directly to consumers. However, it can also work well for wholesale distribution companies if they have a cash and carry location or a showroom for walk-in customers.

But, if your business mainly sells to other businesses and has fewer walk-in sales, you might need a different solution than just POS software.

Important Pros Of Implementing ERP And POS Integration:

Data Integrity

No matter how the data is or what format it’s in, we can easily connect the two systems, even if we already have the necessary calculated data. When integrating them, we make sure that all the required information is available in both systems. This way, when a user uses one platform to work with the data from one system, they can also see the effects on the other system simultaneously.

Ledger Balance Maintenance

Retailers can quickly check their ledger balances at any time. This helps the account person to easily track incoming and outgoing balances for profit and loss. Additionally, Sage 300 offers various structured reports that can be exported for further analysis.

Reduce Risk

In this kind of setup, many retailers are concerned about data security. However, with Sage 300, you can rest assured that your data will be kept safe in both systems, and it will also help to prevent any data discrepancies between them.

Easily Customize the process as per the company standards: Every organization has its own unique way of managing accounts and inventory. With the assistance of Sage 300, these processes can be easily incorporated and synchronized, making it more straightforward for retailers.


By using ERP and POS Integration, you can easily keep track of your stocks, sales, and revenue all in one place. This helps you predict how much inventory you should have and reduces waste while boosting productivity.


It’s important to remember that POS and ERP are not the same. If you’re in the retail, wholesale, restaurant, or similar business and you haven’t integrated your ERP and POS, you’re wasting time and money. No ERP system can replace a POS, and vice versa. So, make sure to integrate them for maximum efficiency.

Jabit Soft is a leading provider of comprehensive IT and development services, dedicated to empowering businesses through cutting-edge software development and digital solutions. With a global presence, we have completed 1500+ projects including some government projects that drive growth and innovation for your organization.

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