Caveat:
Differences between an ERP solution (Open System) and a RA101.1 financial model (Closed System) It’s important to note that the terms “closed system” and “open system” used in this context are specific to the provided information and may not align with broader definitions or industry standards. Additionally, the characteristics mentioned are based on the given description and may not encompass the full range of features and capabilities of ERP solutions and financial models.
Environment
Closed System: Allows only one type of input, which is a CSV file.
Open System: Allows different types of input, such as barcode, data capture, and IoT. It has a more diverse range of input options.
Closed System: Does not have an automatic interface with the company’s ERP solution.
Open System: Resides either in-house or in the cloud, providing flexibility in terms of deployment.
Input
Closed System: All fields are validated, ensuring data integrity.
Open System: Is prone to accepting dirty data, meaning it may accept data with errors or inconsistencies.
Closed System: Complies with Generally Accepted Accounting Principles (GAAP) and is always in balance.
Open System: Entries can be raised without supporting documentation, potentially allowing for less stringent validation requirements.
Output
Closed System: Outputs a CSV file as the primary output format.
Open System: Driven mainly by standard reports, offering predefined reporting formats.
Closed System: Utilizes a dashboard as the interface with users, providing a summarized view of data. Users also have the option to drill down to see the underlying transactions
Open System: Allows users to interrogate specific ledgers such as the General Ledger, Accounts Receivable and Payable ledgers, and Inventory ledgers, providing more detailed access to data.
Decision Support Systems
Closed System: Designed primarily for strategic and tactical reporting, focusing on higher-level decision-making.
Open System: Designed for operational and transactional reporting, emphasizing day-to-day operational processes and monitoring.