What are the Difference and Similarities Between SAP and ERPNext?

Automated system is the term that is buzzing everywhere now. The business processes are not the exception as all business owners are seeking cost-effective solutions to implement automated business processes.

The evolving technologies gift us cutting-edge tools every decade. ERP is such type of automated technology that makes business processes seamless and centralized.

A study reveals that 95 % of businesses see improvement in business processes after ERP implementation. 82 % of them receive ROI forms within their expected timeframe.

How do you choose the right ERP solution if you wish to implement ERP? ERPNext solution and SAP, which one should you choose? Let’s learn it by studying their points of comparison

ERPNext vs SAP: Things You Should Know

Choosing an ERP system is a very confusing task, especially when you are new to ERP technologies. Don’t worry, keep reading and come out of the confusing zone.


What is ERPnext Solution?

ERPnext is a free and open-source ERP system from an Indian SAAS company named; Frappe Technologies. It helps users to streamline all business processes across all departments of a single organization. It is a centralized system that records and maintains of core functionalities of a business process from a single dashboard.

From sales, purchase, human resources, inventory, Finance, and accounts to  CRM, administration, project management, manufacturing to website management -it documents all resources and data.

Features of ERPnext

  • Compatibility:

ERPnext is like an online tool or web application. It is compatible with various devices and platforms.

  • Easy UI:

The user interface in ERPnext is easy to use and access.

  • Flexibility:

ERPnext is an easy-to-customize tool as it does not need any programming.

  • Support Multi:

Currency Based Operation: Its accounting and billing features can deal with multi-currency calculation models.

  • Efficient Sales and CRM:

It can manage multiple sales and CRM activities with several companies and generate effective reports.

  • Website Builder:

With the ERPNext solution, brands can effortlessly design, develop, and manage their websites. This feature turns  ERPNext for ecommerce business a reliable tool.

  • Seamless Project Management:

From project, planning organizing, and collaborating to analyzing, it makes every single detail of a project manageable.

  • Functions:

ERPNext offers separate modules for each of the core functionalities of business processes. It includes accounting, CRM, sales and purchase, HR and Payroll, and others.

Also Read: What Issues Does ERPNext Address in Businesses?


What is SAP?

SAP refers to a globally renowned ERP software system. It is a German company named SAP SE, once which was called ‘System analyse Programmentwicklung’ or System Analysis and Programme Development.

This software streamlines business functions with a centralized data management system. Hence SAP allows users to keep complex data easily manageable.

With the integration of AI and machine learning, SAP takes the UX experience of ERP software to the next level.

Features Of SAP

  • Financial Management

From accounting to asset and cost controlling, bank reconciliation to asset management, from asset tracking to report analysis, it offers all.

  • Sales and Customer Management

Its sales and customer management module includes services such as customer and service management. It offers seamless campaign marketing campaign management and tracks lead activities also.

  • Purchase and Inventory Control

This module manages data and creates reports on procurement, and accounts payable. It includes management of warehouse accounts and cost management of the supply chain and logistics department.

  • Business Intelligence

SAP comes with several intuitive tools to speed up decision-making. It includes automated metrics analysis, interactive analysis, and customized report creation.

  • Analytics and Reporting

The intuitive design of the dashboard and real-time analytics are tow the most powerful features in SAP.

  • Industry Specific Capabilities

From services, manufacturing, retail, and wholesale to professional consultation services, SAP offers customized features to all needs.

  • Mobility

SAP Business One sales app which is accessible on both Android and iOS, creates convenience for the sales team.

[Resource: SAP]


ERPNext vs SAP: Can ERPNext Replace SAP?

No, the ERPNext solution can not replace SAP because their target customer base is different. ERPNext is a good fit for small and medium-term enterprises. On the other hand, SAP is a great ERP solution for MNCs or large or growing medium-scale organizations.

  • Functionality and Scale

SAP offers an extensive range of functionalities that handle complex business processes of large-scale businesses. On the other hand, the robust features of the ERPNext solution fit best in the SME environment.

  • Cost

For small and medium-range organizations, ERPNext is a more cost-effective solution than SAP. On the contrary, for large-scale SAP will be a prudent choice.

  • Customization And Integration

SAP and ERPNext, both provide a wide range of customization and easy integration options. However, customization and integration with ERPNext are straightforward. On the other hand, integration and customization in SAP’s vast ecosystem are complex.

  • Support and Maintenance

SAP provides a comprehensive support system, whereas ERPNext provides community support to users.

ERPNext Solution Provider

The TechCloud’s ERPNext Solution Can Help You implement an ERP System

Want to Implement an ERP System? Can’t decide which option is best for you? Don’t worry, we are here for you. Get our free consultation today! Schedule a free session today with us!


The extensive features of SAP suit more large-scale industry profiles, whereas the ERPNext solution is a go-to choice for generic needs.

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