ERP or accounting app for a Zid store?

An accounting app covers invoices, VAT and the ledger. An ERP adds stock across warehouses, purchasing and branches. The app works with both.

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An accounting app and an ERP both keep your books. The difference is what else each one tracks.

The short answer: an accounting app usually covers invoices, VAT, the general ledger and financial reports. An ERP adds stock across several warehouses, purchasing and branches, and sometimes manufacturing, all in one system. A Zid store usually needs an ERP once its books have to track stock in more than one warehouse, purchasing, or branches.

Point by point

Accounting app and ERP, on the same points
Accounting appERP
What it coversYour booksYour books and operations in one system
Invoices and VATUsually coveredUsually covered
Ledger and financial reportsUsually coveredUsually covered
StockSome apps cover it, more simplyBy quantity in each warehouse
Warehouses and branchesUsually outside its scopeUsually covered
PurchasingUsually outside its scopeUsually covered
ManufacturingUsually outside its scopeSome systems cover it
SetupUsually simplerUsually longer, since it covers more
Zid orders and returns with the appAvailable from StarterAvailable from Starter; returns with Odoo and ERPNext
Zid location stock with the appWith Wafeq from Growth, including a one-time opening-stock loadFrom ERP warehouses to each Zid location, from Growth
Available with the app todayWafeqOdoo 18 and 19, ERPNext, Dynamics 365 Finance and Operations

A general comparison; details vary by system.

What decides it for a Zid store

Three questions point the way:

  • Where is your stock? A store shipping from one warehouse tracks stock in one place. A store spread over several warehouses or branches needs the quantity in each one inside its books, which is what an ERP usually covers.
  • Do you buy with purchase orders? Tracking supplier purchase orders and receiving them into a warehouse is usually ERP work.
  • Do you have branches? Branches with their own stock or accounts usually need a system that brings them together.

If every answer is no, an accounting app usually covers what your books need. For the decision by order volume and plan, the article “ERP or accounting app at 100, 500 and 2,000 orders” walks through it step by step.

What the app does with each

With an accounting app and with an ERP
  1. Paid orders

    Each paid order is posted with the customer, items, tax and shipping, then read back to confirm, with both.

  2. Returns

    With Wafeq, Odoo and ERPNext, each return posts as one credit note. Returns are not available with Dynamics 365 Finance and Operations.

  3. Stock

    With an ERP, stock flows from its warehouses to each Zid location. With Wafeq, stock is connected too, including a one-time opening-stock load.

  4. Back to Zid

    The ERP document number appears as a comment on the Zid order with every system. Updating the order status in Zid is available with Dynamics 365 Finance and Operations, and is switched on during setup.

E-invoicing applies to both

In Saudi Arabia, ZATCA defines an e-invoice as one generated in a structured electronic format through electronic means. That applies to the business whatever system it runs, so check that the system you pick meets ZATCA’s requirements.

Questions merchants ask

Can I start with an accounting app and move to an ERP later?

Yes, and many stores do. When you move, the link to the new system is set up and its scope of work sets what it covers.

Do returns reach an accounting app the same way they reach an ERP?

Yes, with Wafeq, Odoo and ERPNext: each return posts as one credit note. Returns are not available with Dynamics 365 Finance and Operations.

My system is not mentioned here. What then?

If it has a public API, the link can be built for you on request.

Sources

  1. ERPNext: Introduction (Frappe documentation)
  2. ZATCA: What is e-invoicing

Systems in this comparison

Further reading

More comparisons