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What Is Odoo and What Is It For?

Including when Odoo is not the answer. We are an Official Odoo Partner, so that part is worth reading first.

Odoo is a modular ERP that brings together sales, CRM, purchasing, inventory, accounting, manufacturing, projects, HR, point of sale, eCommerce and website on a single database. It comes in an open-source edition (Community) and a commercial one (Enterprise), and it is developed by Odoo S.A., headquartered in Belgium.

What sets it apart from other ERPs

Three things, and none of them is the list of modules.

Community or Enterprise

CommunityEnterprise
LicenseOpen source, freePer-user subscription
Vendor supportNoYes
Mobile appsNoYes
Advanced featuresLimited in accounting, quality, maintenance and other areasComplete
Version upgradesOn your ownTools provided, included depending on the plan
Best fitTeams with in-house technical capacity and a narrow scopeCompanies that want to run their business, not maintain software

The catch with Community is that its cost does not disappear: it moves. Run the numbers over three years including your people's hours, not just the license line.

When we do NOT recommend Odoo

We are an Official Odoo Partner for Central America and Panama, so this is the section to read most carefully.

What to know before hiring an implementation partner

  1. The software is the cheap part. The investment is in the implementation, not the license.
  2. Tax localization decides whether the project is viable. Electronic invoicing (e-invoicing) and payroll have their own timeline and their own paperwork. In Costa Rica that means Hacienda (Costa Rica's tax authority) and the CCSS (Costa Rica's social security fund); in Panama, the DGI (Panama's tax authority); in Guatemala, the SAT (Guatemala's tax authority).
  3. The code for your customizations should be in your name. Get it in writing. If you leave the consulting firm, your business rules leave with you.
  4. A serious consulting firm says no to half of your initial wish list. The one that says yes to everything will miss the deadline.

If you want the general concept before the product, it is in what is an ERP. If you are already comparing, see Odoo vs. SAP Business One. And if you want to size the investment, the calculator gives you a range instantly.

Frequently asked questions

What is Odoo and what is it for?

Odoo is a modular, open-source business management system (ERP), with a commercial edition called Enterprise. It lets you run an entire company from one place: sales, CRM, purchasing, inventory, accounting, manufacturing, projects, HR, point of sale, eCommerce and website, all on the same database.

What is the difference between Odoo Community and Enterprise?

Community is open source with no license fee, but it lacks several features companies end up needing, vendor support, and the mobile apps. Enterprise is commercial and includes all of that. For most midsize companies, Enterprise works out cheaper from the second year on, because what you save on the Community license gets paid in hours from your team or your consulting firm.

How much does Odoo cost?

You need to separate two things. The subscription is paid to Odoo, depends on the plan and the number of users, and its current price is published on odoo.com; check it there, because it changes. The implementation project — consulting, data migration, local tax compliance and training — is usually the bigger part of the first year, and it is the part almost nobody publishes.

Who owns Odoo?

Odoo S.A., a company headquartered in Belgium. The product started as OpenERP and was renamed Odoo. It maintains an open-source edition and a commercial one, and works with a network of certified partners in each country who carry out the implementations.

When is Odoo not the best choice?

Three, mainly. When the parent company requires standardizing on another corporate ERP. When the industry has very specific validation or traceability requirements already handled by certified vertical solutions. And when the organization wants no ability to adapt the system and prefers a closed ecosystem that does not change. Recommending it in those cases is the fastest way to make the project fail.

Is Odoo a good fit for small businesses?

Yes, if the scope fits. The classic mistake is starting with twelve modules. A healthy start is usually Sales, Inventory and Accounting, with the rest in later phases once the team is operating with confidence.

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