When your business needs go beyond what basic accounting software can provide, it’s time to choose an ERP system as your new business partner. Selecting the right option can be challenging due to the many choices available in the market. There are large, expensive ERPs like SAP, Oracle, and NetSuite, and then there are newer ERP platforms that are gaining a lot of fanfare. A quick search would lead you to the “Free” and “Open Source” ERP platforms, ERPNext and Odoo. CloudConverge has worked on both platforms and has listed key distinctions between the two platforms, along with our recommendations from these two popular platforms:
Both solutions meet your needs effectively. However, our team believes ERPNext is the better choice. Here’s why.
Odoo Isn't Truly Open Source, and We Can Back That Up
Odoo and ERPNext compete as leading open-source ERP systems. The power of open-source software allows users to take complete control by reviewing, modifying, and expanding the code to ensure it meets their specific needs.
However, Odoo’s “open source” label only applies to a small part of its overall system. Access to the complete system modules requires payment, and their source code is not publicly available. While it may seem to offer open-source access, in reality, it provides limited options.
On the other hand, ERPNext(Odoo alternative) is and always will be 100% open source.
Here’s how the two compare: the table shows Odoo Community (free), Odoo Enterprise (paid), and ERPNext (free). The two systems offer different accounting features. Odoo Enterprise has a complete accounting system, while Odoo Community provides basic invoicing and payments.
ERPNext vs Odoo: A Detailed Comparison Guide to Choose the Best ERP for Your Business
| Features | Odoo Community (Free) | Odoo Enterprise (Paid) | ERPNext (Free) |
|---|---|---|---|
| Accounts | Basic invoicing & payments | Financial statements, bank reconciliation, and global compliance | Full accounting suite equal to (and often broader than) Odoo Enterprise |
| Procurement | Basic supplier & PO management | Price lists, purchase agreements, automated RFQs | Full-featured procurement |
| Stock | Simple inventory | Barcode, serial/batch tracking, automation | Complete stock & warehouse management |
| Manufacturing | Basic BOM | Work centers, quality checks, and advanced features | End-to-end manufacturing management |
| Projects | Simple tasks | Forecasting, timesheets | Robust project management |
| Support/Helpdesk | Not included | SLAs, multi-channel support | Included |
| HR & Payroll | Employees & leaves | Payroll + recruitment | Full HRMS & payroll |
| Customizations | Very limited | Odoo Studio (paid) | Built-in customizations + scripting, all free |
Odoo also has basic supplier management. It helps users handle procurement needs through two main features: basic supplier management and purchase order processing. Odoo charges for access to its complete set of modules, and users must purchase them to use all the system’s features. While it appears to offer open-source access, it is limited.
On the other hand, ERPNext is completely open-source software and will remain so permanently.
There is really a lot of money to save
ERPNext provides free access to its software because it operates as an open-source platform. You only pay for hosting—and even that costs far less than Odoo.
For example, if you have 50 users who are going to use the ERP:
- ERPNext: ERPNext is free to use. You only pay for hosting under $50/month for hosting
- Odoo: At least ~$450/month (at the time of writing this article, because pricing is per user and per module)
The user base expansion creates a significant gap between these two services.
ERPNext provides users with all system capabilities from their first day of use, with no usage constraints or module availability limitations.