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tally is the old system using for ordering most specially inventory. ERP is a software which is a complete package for monitoring, ordering etc.
The differences would beTally is a tool to record your accounting details, not an ERP package.Tally is not integrated with any other applications.Tally is not modularised like GL, purchasing , ap, ar, order management etc as any erp application.Tally has limited reporting capabilities.Tally is not a web based application.
ERP is a sofware which would suit all the management and financial reports custamized to the companys needs. A full completed software in all aspects.