Odoo vs. SAP Business One: Compare Core Capabilities and More

Odoo and SAP Business One are two robust enterprise resource planning (ERP) systems. Each solution helps organizations improve their productivity and can be deployed in the cloud or on-premise.

Here, we compare the two systems on several factors.

What is the Difference Between Odoo and SAP?

  • Odoo provides pricing on its site, whereas SAP Business One requires a custom quote.
  • When it comes to sales and marketing functions, Odoo has individual apps for them, but SAP Business One covers all features in one module.
  • Odoo is intended for all company sizes, and SAP Business One targets small and medium-sized businesses.

Product Overviews

The following excerpts from our Odoo and SAP Business One reviews summarize each software solution:

Odoo

Odoo ERP is a comprehensive open-source 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.

SAP Business One

Business One is SAP’s ERP software for small and medium-sized businesses that accommodates extensive industry-specific functions, best practices and processes. Its focus is on consumer products, industrial machinery and components, professional services, retail information and wholesale distribution.

Specifically designed to scale as small businesses grow, Business One’s primary functions include helping users streamline key processes, gain greater insight into their businesses and make decisions based on real-time information to drive profitable growth. This software can be deployed on-premise or in the cloud, and it’s integrated with a business intelligence module with handy analytics.

Features Comparisons

Financial Management

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.

SAP Business One

SAP Business One’s Financial Management features streamline accounting operations and provide valuable benefits, such as improved profit margins, reduced errors and better decision making. Its tools include accounting, cash flow management, a fixed asset management system, banking and reconciliation features, budgeting and multicurrency support. The Financial Management module also provides real-time standard and custom financial reports.

Bottom Line

In terms of customer payments, Odoo has a portal and QR scanning capabilities, while SAP Business One users may need to integrate with a third-party software company. Also, Odoo has its Smart Reconciliation Tool, whereas SAP Business One offers AI functionality via its Document Extraction Services. Note that this service requires a separate purchase.

Inventory 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.

SAP Business One

The Purchasing and Inventory Control module manages the complete order-to-pay cycle, including receipts, invoices, returns and payments, to optimize purchasing practices and control costs. Users can perform inventory counts, stock tracking and transfers in real time across multiple warehouse locations by serial number, lots and multiple bin locations.

Additional features include streamlined procurement processes, master data management, warehouse and accounting integration with real-time synchronization, accounts payable features and integrated reports with real-time data.

Bottom Line

Both software solutions have similar inventory management features. But when it comes to integrating with shipping providers (e.g., FedEx, DHL, UPS), Odoo offers this built-in feature for an extra cost, while SAP Business One requires third-party integration.

Supply Chain Management

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.

SAP Business One

SAP Business One doesn’t provide users with built-in supply chain management features, but companies can integrate it with any of the products within SAP’s Supply Chain Management portfolio. The portfolio consists of several products based on industry and company size in five core areas: supply chain planning, supply chain logistics, manufacturing, product lifecycle management and enterprise asset management.

Bottom Line

For supply chain management, Odoo users can buy the Purchase app and integrate it with the Inventory, Accounting or Sales apps if desired, and SAP Business One clients can combine the software with any of SAP’s Supply Chain Management solutions.

Customer Relationship Management (CRM)

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.

SAP Business One

The Sales and Customer Management module lets users oversee the full sales process and customer lifecycle, starting from initial contact and going through final sale, after-sales service and support. Some of its features include sales and opportunity management, marketing campaign management, customer management, service management, analytics and mobile functionality.

Bottom Line

Odoo’s CRM app has features that are intended for sales teams. Marketing and customer service users will need to purchase the dedicated Marketing Automation or Helpdesk app. In contrast, SAP Business One includes all sales, marketing and customer service features in one module.

Human Resources

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.

SAP Business One

Human resources features aren’t built into SAP Business One. Rather, the software integrates with the SAP SuccessFactors HXM Suite solution. SAP SuccessFactors has four core categories for a full employee lifecycle: Employee Experience Management, Core HR and Payroll, Talent Management, and HR Analytics and Workforce Planning. It also has features to support country-specific compliance requirements (e.g., payroll support for more than 46 countries), and companies can extend their HR capabilities with integration with more than 300 SAP partner apps.

Bottom Line

Odoo doesn’t have some core HR features, such as payroll or benefits administration, whereas SAP SuccessFactors HXM Suite does.

Pricing

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 is a paid edition that can be deployed on premise or in the cloud. It starts at $28 per user, per month (billed annually). New customers can take advantage of its $4 discount, so the price drops to $24 per user, per month. If the software is hosted in the cloud, Odoo provides a freemium model, where a single application is free for unlimited users. But if the client wants to purchase a subscription of more than one app, they’ll have to pay the costs of the individual apps plus the per-user price. The apps can cost anywhere from $12 per month to $72 per month.

There’s an additional cost for integrations with other systems that ranges from $36 per month to $96 per month. Odoo also provides an Implementation Success Pack in four pricing tiers that range from $3,060 to $21,250.

SAP Business One

SAP Business One has a Starter package for companies with up to five users that includes accounting, sales, stock control and analytics features. Companies can scale up by adding other modules if needed.

SAP Business One doesn’t publicly list its pricing information, but based on third-party sources, the Starter package appears to cost $39 per user, per month, and it also requires a one-time fee of $1,357. SAP Business One offers perpetual and subscription licensing options.

Bottom Line

Odoo lists its prices on its site, while SAP Business One requires prospects to get a custom quote.

Customer Support

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.

SAP Business One

All SAP Business One customers with a valid maintenance contract have access to:

  • 24/7 support for critical issues
  • SAP Business One’s support launchpad portal with articles, documentation and ways to contact support
  • Automation and proactive support tools, such as a remote support platform
  • Software updates
  • SAP Business One community forum

The vendor also offers free SAP Business One training and roadmaps.

Bottom Line

Both vendors provide users with software updates and self-service functionality. However, Odoo’s Implementation Success Pack includes a dedicated consultant. SAP Business One has proactive support tools, but no option for a consultant. Though, note that SAP has a network of implementation partners who may have additional support.

ERP Vendor Comparison Guide

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

Download Comparison Guide