ERPNext vs. Odoo: Compare Core ERP Capabilities and More

ERPNext and Odoo are two open-source ERP software solutions that empower organizations to automate their business processes. Each software is broken down into core modules that integrate with one another. In this post, we compare the popular ERP solutions on several factors.

What is the Difference Between ERPNext and Odoo?

  • Each of ERPNext’s cloud-based pricing plans support a limited amount of users, while Odoo Enterprise’s pricing tiers accommodate unlimited users.
  • While both software products are intended for all company sizes, ERPNext’s core niche is smaller businesses that don’t have complex requirements and are in specific sectors like manufacturing, distribution and health care.
  • Both ERP software vendors have similar support offerings. However, ERPNext provides email and phone support as part of its Enterprise plan, while Odoo strongly prefers users contact them by email.

Product Overviews

The following excerpts from our ERPNext and Odoo reviews summarize each ERP software:

ERPNext

ERPNext is an open-source enterprise resource planning (ERP) system aimed at small and medium-sized businesses. It helps companies with accounting, project and task management, sales, purchase, inventory, customer relationship management, administration, human resource management, manufacturing and other business operations. This system is most suitable for businesses in the services, manufacturing, retail, distribution, health care, education, nonprofit and agriculture sectors. ERPNext has extensive functionality that’s integrated into a single platform for easy management.

Odoo

Odoo ERP is a comprehensive open-source enterprise resource planning (ERP) software made up of an integrated suite of business modules (known as apps), including customer relationship management, accounting, inventory management, project management, warehouse management, manufacturing and purchasing. These modules aim to efficiently and seamlessly communicate with each other to exchange information.

Odoo boasts over 40 main apps that are regularly updated, and more than 16,000 third-party plug-ins are available in its app store. Because it’s a modular system, customers can start with a subset of tools and add modules as needed.

Features Comparisons

Financial Management

ERPNext

ERPNext’s Accounting module lets users see important account information (e.g., income, expenses) at a glance with configurable dashboards. Users can view their Charts of Accounts, track journal entries and set up notifications for closing periods. With the billing feature, they can also send invoices to customers, receive electronic payments and remind customers of payment deadlines with email or SMS notifications. ERPNext accommodates integration with an unlimited number of bank accounts, and the Accounting module supports multiple languages and currencies.

Odoo

Odoo’s Accounting app has many beneficial features, such as an accounting dashboard, bank synchronization and expense management. Users can customize their cash flow statements or balance sheets, and they can filter, annotate and compare data within their financial reports. Odoo can automatically turn sales orders or delivery orders into electronic invoices, and users can set up automatic follow-ups for payment reminders. The software has a dedicated customer portal, where customers can see invoices and pay for their orders. Customers can also scan in the QR code on their invoice and pay from their banking app. Finally, there’s a Smart Reconciliation Tool that uses machine learning to deduce the first manual reconciliation and then automatically reconcile journal entries from bank statements against the general ledger.

Bottom Line

Both vendors offer similar robust features for automating financial processes, including support for multiple languages and currencies. However, Odoo has two unique features: the ability for customers to make payments via a QR code and its Smart Reconciliation Tool.

Inventory Management

ERPNext

With ERPNext, users can set a threshold to avoid items going below stock. Once that threshold is reached, the software automatically sends a notification and creates a purchase order. Users can make a master template for tracking item variants, especially if there are multiple variants based on size, color or other factors. ERPNext supports an unlimited number of warehouses, so the items can be tracked right down to the room or bin within a warehouse. Additional inventory management features include quality inspections, multiple measurements, batch inventory, serialized inventory, landed cost vouchers and returns management.

Odoo

Odoo has a double-entry inventory management system that allows full item traceability (e.g., low traceability, serial traceability) from supplier to customer. Users can scan items with a barcode scanner and inventory information will automatically show up in the software. Odoo has automatic replenishment features to prevent stockouts, and users can set up a threshold for triggering an item reorder. Additional inventory management features include drop-shipping, cross-docking, inventory valuation, multiple units of measure, inventory forecasting and multiwarehouse operations.

Bottom Line

ERPNext and Odoo share strong inventory management functionality, including the ability to track items in multiple warehouses, automatic replenishment and flexible measurement units. Note that both vendors can integrate with shipping software, but ERPNext only supports three shipping providers, whereas Odoo integrates with many services for an extra cost.

Supply Chain Management

ERPNext

ERPNext offers numerous features to help businesses manage their supply chains. The Quotations feature lets users set up quotes that display prices, discounts, shipping information and other data. The Logistics Management feature handles packing, shipping and delivery, and the Procurement Management feature lets users manage their purchasing processes with purchase orders, a supplier portal, the ability to negotiate pricing with suppliers and automated tax and other purchase costs. Additional supply chain management features include inventory management, warehouse management and barcode scanning.

Odoo

The Odoo Purchase app automates many workflows, such as sending a Request for Quotations (RfQ) to suppliers when the low stock threshold is reached. Users can manually create a personalized RfQ, send RfQs for more than one product at the same time, set up price lists, check product availability and track their orders. In addition, they can negotiate purchase tenders with multiple suppliers, analyze their purchasing data and track purchasing operations within multiple locations or warehouses.

Bottom Line

While ERPNext has a dedicated supply chain management module, Odoo does not. Instead, users can purchase the Odoo Purchase app and integrate the app with the Inventory, Accounting, Manufacturing (if desired) and Sales apps for advanced features. Also, ERPNext has a supplier portal, but Odoo does not.

Customer Relationship Management (CRM)

ERPNext

ERPNext ‘s CRM software includes several features for sales and marketing teams. It has omnichannel capabilities, so users can send emails or make calls directly from the CRM. There is also a Call Popup feature that notifies users of incoming calls. ERPNext automates manual workflows, such as assigning leads to sales reps. Users can see their pipelines in real time, as well as track metrics (e.g., converted leads, sales order values) via the Sales dashboard. Finally, the CRM tool has digital marketing features like email and newsletter campaign builders, lead management, customer management and a Campaign Efficacy report.

Odoo

Odoo’s CRM app has automated features for scheduling sales activities, such as calls and meetings. It also includes pipeline management features that allows users to move opportunities from one stage to another with a drag-and-drop user interface. Users can make calls or send emails directly from the app, as well as measure their performance with real-time data in custom dashboards and reports. Odoo CRM integrates with the Email Marketing, Sign and Sales apps for more advanced features.

Bottom Line

While both solutions have numerous features for sales, marketing and customer service teams, the Odoo CRM app doesn’t offer built-in marketing features. Instead, it integrates with the Email Marketing app.

Human Resources

ERPNext

ERPNext’s HRMS module includes powerful features for managing the employee lifecycle. With the Recruitment tool, recruiters can create a staffing plan, publish job openings, review applications and manage their talent pipelines. Once a candidate accepts a job offer, recruiters can create an employee record with one click. Other features within the HRMS module include an employee database, employee training, automatic payroll generation, leave management, expense management and attendance tracking.

Odoo

Odoo’s Human Resources function consists of several integrated apps. The Employees app stores individual employee profiles, so managers can track attendance, employees’ contract status, timesheets and other criteria. Employees can monitor their leave and submit time off requests for approval. The Employees app also has collaboration features, such as a social network for sharing files, discussions and chatting, and gamification for improving engagement and performance.

The Recruitment app allows recruiters to manage the entire hiring process, and the Appraisal app helps companies manage the performance management process with review templates and automated workflows. What’s more, with the Expenses app, employees can capture expenses and submit them for reimbursement. Finally, Odoo has a free eLearning app that allows organizations to set up and manage training programs, including creating course content, setting up assessments and tracking certifications.

Bottom Line

ERPNext’s training features within the HRMS module is limited to tracking employee training, while Odoo’s eLearning app offers more functionality. ERPNext customers that are looking for a full-featured LMS software can take a look at its Education module.

Pricing

ERPNext

ERPNext’s open-source version is free to download, and it includes all modules. For users that want to deploy the software in the cloud, the Managed Hosting plan starts at $10 per site, per month. It covers all modules (except for HR, payroll and healthcare), security updates and server monitoring. ERPNext offers a 14-day free trial.

There’s also three plans that offer additional features, such as a product warranty. It has three pricing tiers (based on annual billing).

  • Starter – The Starter plan starts at $400 per site, per month for up to 10 users. It adds on product warranty and functional support. If a company needs additional users, there’s a fee of $40 per month.
  • Small Business– The Small Business plan starts at $700 per site, per month for up to 20 users. If a company needs additional users, there’s a fee of $36 per month.
  • Enterprise– The Enterprise plan costs $1,250 per site, per month for up to 50 users. Companies can optionally add on unlimited users, a product expert and large database support for an additional fee. If a company needs additional users, there’s a fee of $25 per month.

Odoo

Odoo has two editions: Community and Enterprise. Odoo Community is open-source software, and users can simply download the source code for free. It includes access to the following apps:

  • Website Builder
  • Blog
  • Forums
  • Live Chat
  • eLearning
  • Sales
  • CRM
  • Point of Sale
  • Invoicing
  • Inventory
  • Purchase
  • Manufacturing

Odoo Enterprise has a free plan that includes access to only a single application/module, and it accommodates unlimited users. Then, it has two paid plans: Standard and Custom. The Standard plan costs $24.90 per user, per month (with discount included for new users) that accommodates an unlimited number of apps. The Custom plan costs $37.40 per user, per month and are for organizations that prefer to customize Odoo to fit their requirements.

Odoo also provides an Implementation Success Pack in four pricing tiers that range from $3,060 to $21,250.

Bottom Line

All of ERPNext’s modules are included in its open-source edition, whereas Odoo’s Community only covers a limited number of apps. What’s more, ERPNext’s cloud-based plans limit the number of users it covers (companies will have to pay an additional fee if they want to increase their user count), while Odoo’s Enterprise plans support unlimited users.

Customer Support

ERPNext

ERPNext doesn’t offer free support for its self-hosted instances, so users will need to purchase a support contract that covers:

  • Priority bug fixes
  • In-app support
  • Help during software upgrades
  • Security alerts

The contract accommodates an unlimited number of users and is priced per user. Please contact the vendor for a quote.

As mentioned, the ERPNext Enterprise tiers offer professional support.

  • Basic – The Basic plan only covers email support.
  • Professional – The Professional plan includes email and phone support during local business hours, a sandbox environment, custom development, feature enhancements, personalized training and an account manager.
  • Advanced – The Advanced plan adds on 24/7 Enterprise support, access to the Product Team and data residency.

Odoo

For Odoo Community, support is limited to the Odoo Community forum, product documentation and tutorials. Odoo Enterprise, meanwhile, has 24/5 (Monday through Friday) email support for billing or subscription questions, bug fixing services or issues with version upgrades. Lastly, the Implementation Success Packs also include access to a dedicated consultant and 24/5 email and live chat support.

Bottom Line

If companies elect to download the open-source version of ERPNext or Odoo, they should be aware that there is very limited support. ERPNext users will have to pay for additional support, whereas Odoo requires scaling up to its Enterprise edition for advanced support. Both vendors offer similar support features, except that Odoo strongly prefers email support. That said, users can still reach Odoo via phone if there’s an emergency.

ERP Vendor Comparison Guide

Download our FREE 2022 Vendor Comparison Guide with reviews on more than 15 popular ERP solutions.

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