What is Odoo? Everything You Need to Know
Odoo is an open-source enterprise resource planning platform that offers a fully integrated suite of business applications covering CRM, sales, accounting, inventory, manufacturing, HR, project management, and over 40 additional modules. Originally launched in 2005 as TinyERP, Odoo has grown into one of the most widely adopted ERP systems with over 12 million users globally. Its modular architecture allows businesses to start with a few apps and add more as needs evolve, making it both affordable and highly scalable.
Why It Matters
Odoo matters because it democratizes access to enterprise-grade software that was previously affordable only for large corporations. Its open-source Community edition is free, while the Enterprise edition offers advanced features at a fraction of the cost of proprietary ERP systems like SAP or Oracle. For businesses seeking a single platform to replace a patchwork of disconnected tools, Odoo delivers remarkable value with low total cost of ownership.
Key Features
Core capabilities and components you should know about.
Modular App Ecosystem
Over 40 official apps and 40,000+ community modules let you build a custom ERP by installing only the features you need, from CRM and sales to manufacturing and field service.
Integrated CRM & Sales
Manage your entire sales pipeline from lead capture to quotation to invoice with built-in email integration, activity scheduling, and revenue forecasting.
Double-Entry Accounting
A full-featured accounting module with bank reconciliation, automated invoicing, tax management, and financial reporting that supports multi-company and multi-currency setups.
Inventory & Warehouse
Advanced warehouse management with barcode scanning, multi-location tracking, automated replenishment rules, and real-time stock valuation.
Website & eCommerce
A built-in website builder and online store that are natively connected to inventory, payments, and shipping so you can sell online without third-party integrations.
Open Source & Customizable
Full access to source code means developers can customize workflows, build new modules, and integrate with any external system via a well-documented REST and XML-RPC API.
How It Works
Odoo operates on a modular framework where each business application (CRM, Accounting, Inventory, etc.) functions as an installable module that shares a common database. When you install a new module, it automatically integrates with existing ones — for example, installing the Sales module links it to Inventory and Accounting so that confirmed orders trigger stock reservations and generate invoices. The platform can be self-hosted on your own servers or used via Odoo Online (SaaS), giving you flexibility in deployment.
Key Benefits
Significantly lower total cost of ownership compared to proprietary ERP systems like SAP or Oracle
Highly modular so you pay only for the apps you actually use
Open-source community with over 40,000 contributed modules and active developer ecosystem
Modern and intuitive user interface that requires minimal training for end users
Supports multi-company, multi-currency, and multi-language out of the box for global operations
Common Use Cases
Frequently Asked Questions
Is Odoo really free?
Odoo Community edition is completely free and open source. However, the Enterprise edition which includes advanced features like full accounting, studio customization, and official support requires a paid subscription. Most growing businesses opt for the Enterprise edition because of its richer functionality and vendor support.
How does Odoo compare to SAP or Oracle ERP?
Odoo offers comparable core functionality at a fraction of the cost, making it ideal for small to mid-size businesses. SAP and Oracle are better suited for very large enterprises with highly complex, industry-specific requirements. Odoo wins on ease of use, speed of implementation, and flexibility for customization.
Can Odoo handle multi-company setups?
Yes. Odoo natively supports multi-company environments where each company can have its own chart of accounts, warehouses, and configurations while sharing a single database. Inter-company transactions such as purchase orders and invoices can be automated between entities.
What programming language is Odoo built with?
Odoo is built primarily with Python for back-end logic and uses JavaScript (OWL framework) for its front-end web client. Customizations and new modules are written in Python, making it accessible to the large global pool of Python developers.
How do I get support for Odoo?
Enterprise edition subscribers receive official support from Odoo SA. Alternatively, you can work with an authorized Odoo partner like ECOSIRE for implementation, customization, training, and ongoing support tailored to your specific business processes.
Related Topics
What is ERP? Complete Guide
Enterprise Resource Planning (ERP) is a comprehensive software system that integrates and manages core business processes such as finance, human resources, manufacturing, supply chain, and customer relations within a single unified platform. ERP systems serve as a central hub for real-time data flow across departments, eliminating information silos and enabling better decision-making. Modern ERP solutions are available as cloud-based, on-premise, or hybrid deployments to suit organizations of every size.
Complete Guide to Odoo Modules
Odoo modules are individual business applications within the Odoo ERP platform that each handle a specific business function such as CRM, Accounting, Inventory, or Manufacturing. With over 40 official modules and more than 40,000 community-contributed apps, Odoo offers one of the most comprehensive and modular ERP ecosystems available. Each module can be installed independently and integrates automatically with other installed modules through shared data models, enabling businesses to build a custom ERP suite tailored to their exact needs.
ERP Implementation: Complete Step-by-Step Guide
ERP implementation is the process of selecting, configuring, deploying, and adopting an Enterprise Resource Planning system within an organization. It encompasses everything from initial needs assessment and vendor evaluation through system configuration, data migration, user training, and go-live support. ERP implementation is widely considered one of the most complex and impactful technology projects a business can undertake, requiring careful planning, cross-functional collaboration, and disciplined change management to succeed.
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