This post is a translated and updated excerpt of an earlier comparison between ERPNext and Odoo, which was written by us in 2022. The information contained in this post reflects the status of both programs in April 2025.
ERPNext vs. Odoo
Two similar software solutions?
At first glance, Odoo and ERPNext appear to be very similar programs. Both are ERP-solutions, both are designed for small to medium-sized companies, and both claim to provide a modular, open and cost-effective ERP solution.
Odoo is the big player in its respective niche, at least compared to ERPNext.
But there are also differences. Compared to ERPNext, Odoo is arguably the bigger player. It boasts a larger customer base and a long history.
Both solutions make similar promises. Their modular structures are supposed to make migration easy and both programs are designed to replace a wide array of specialized applications.
In this article, we take a closer look at the similarities and differences between the two frameworks. For the time being, it is not a question of determining ‘better’ or ‘worse’; for us, it is more important to provide customers with an early orientation. Basis for this article is our own experience with Odoo, which we have used for over two years before migrating our own systems to ERPNext.
The Business Model
The different business models of ERPNext and Odoo is the most crucial difference between the frameworks. In fact, most other differences derive from here. Both Odoo and ERPNext claim to be open-source software. However, at least in the case of Odoo, this is only one half of the truth.
Odoo is financed through an upgrade model. In addition to the “Community Version” under the GNU Public License, the developers offer a proprietary “Enterprise Version”. Many of Odoo’s best features are hidden behind this paywall. Most importantly, the export of company data was impossible under our Community Version, when we attempted to do so before switching to ERPNext. To make a fair comparison, you would have to compare three programs: ERPNext, Odoo Community and Odoo Enterprise.
The software-part of ERPNext, on the other hand, is free and includes all features as well as an unlimited number of users. However, you have to, somehow, host your files and the program itself. ERPNext offers a commercial solution, and if you host the program yourself or leave it to an IT partner, you can save these costs.
You also have to pay for manufacturer support with ERPNext. Support is based on an Enterprise Model. As opposed to Odoo Enterprise, the fees do not increase with the number of users (Odoo Community is free for unlimited users, but lacks many features), but ERPNext certainly gives preferential treatment to paying customers.
ERPNext
+ All modules are free
+ True open-source model
– You have to pay or somehow host your own files
– Preferantial support for paying customers
Odoo
+ Free Community Version under GNU
+ High budget thanks to paying customers
– Important features hidden behind paywalls
– App-Store for extra purchases
Frappe’s optional hosting fees. Screenshot by K&K.
Features I – Scope & Quality
Let’s assume that you have either opted for ERPNext or have purchased Odoo in the Enterprise version. What features can you expect from each? Both applications are packages adapted to the needs of a medium-sized company, full of individual, small modules that you can adapt to your day-to-day business.
If your accounting department needs help with the automatic creation of invoices, ERPNext and Odoo both have suitable modules. If your production department want to manage the supply chain from transportation to company logistics, both have modules for this too.
ERPNext scales very easily due free additional users and modules
In terms of pure quality, Odoo is slightly ahead – at least for some modules. Odoo’s higher budges shines particularly when it comes to the financial side. Accounting modules in particular are complex in Germany; the legal situation here is very difficult. This is where ERPNext has its most noticeable weakness.
But even if you have Odoo Enterprise, you might still want to pay, because many modules only appear in their in-house app-store, with specialized features that can sometimes cost you hundreds of Euros. ERPNext, on the other hand, comes with less, and without an appstore, but all modules are included the free version. There might be fewer modules, but you know exactly what you get.
ERPNext
+ Good selection for small to middle-sized companies
+ Ships with all modules
– Slower bugfixing
– German accounting not 100% accounted for
Odoo
+ Good selection for small to middle-sized companies
+ Some modules are slightly better
– More expensive than ERPNext
– Harder to scale
Features II – Custom Modules & APIs
But what if there is no suitable module for a task? Both Odoo and ERPNext offer the option of assemble your own modules; this way, you can ensure that your modules are as close to the realites of your day-to-day operations as possible.
Odoo uses a modular approach. With “Odoo Studio”, you can create your own modules from individual scripts. Odoo Studio works well enough and you can use it to build relatively complex modules. The catch: “Odoo Studio” is also hidden in the Enterprise version of the program. Odoo furthermore has its own app-store in which users can sell their cutsom modules.
ERPNext does not have an equivalent. While v15 has added some visual building tools, they are sadly not as advanced as Odoo’s alternatives. And if you want fully customized modules, you either have to laboriously rebuild existing modules or need basic knowledge of programming languages such as HTML or Python. With a little training, however, even non-programmers can assemble provisional modules.
You need to know about CSS to customize ERPNext
ERPNext has its own API with compatibilities with many external programs from Office applications, over user administration to different industrial machines. External data pools such as bank accounts can also be securely and easily attached to ERPNext in order to feed and process your data.
Odoo also supports most relevant interfaces as well, but it integrates the data in a much less open system. Getting data into Odoo’s ERP framework is easy, but we had real difficulties getting it out again, which led to something resembling a lock-in-effect, in which you are forced to use a particular program because it is so integrated in your workflow that migration becomes too complex to attempt.
ERPNext
+ Own API for external programs
+ Customizable
– No easy toolkit to create modules
– No platform for user generated content
Odoo
+ Odoo Studio to assemble your own modules
+ User generated content via app-store
– Closed ecosystem
– Odoo Studio only for paying customers
– User generated content often expensive
Part of Odoo’s app-store, April 2025. Screenshot by K&K.
The User Experience
If you compare Odoo with ERPNext, you can quickly see which program has the bigger budget. Although ERPNext has made considerable progress in UI and UX in recent years, particularly with the recently launched „Espresso“-Design, Odoo is still a bit more polished – at least if you like the omnipresent purple.
However, if you then want to customize the appearance, the typical peculiarities of Odoo and ERPNext quickly become apparent. Odoo’s look can be customized via the company’s own app store. Many skins are free of charge, but some users are not above charging money for a darkmode (although an official darkmode ships with the program).
Such features are free of charge with ERPNext. However, this comes at the expense of choice. As with the modules, you ideally need to have a basic knowledge of computers and be able code to be able to customize the look of your program to your own taste. In return, though, you can dig unusually deep into the code to be able to make more drastic changes than would have been possible with Odoo.
Apart from that, the user experience of both programs is very much dependent on the modules that you use. We have already discussed the pros and cons of Odoo and ERPNext in this context in the previous section; Odoo is easier to set up, but also hides features behind the paywall.
ERPNext
+ UI in active development
+ Espresso much easier to the eyes as previous iterations
+ Basic features present
+ You can customize the UI…
– … if you have the know-how
Odoo
+ Extremely professional design
/ … if you like purple
+ Customizable via app-store
– App-store sells basic features
Conclusion
ERPNext and Odoo approach similar problems with different philosophies. Both offer a powerful ERP program for small to medium-sized companies with a modular structure, and both manage the balancing act between modularity and usefulness.
Many differences can be traced back to the different business models and the resulting different budgets. While ERPNext offers all modules and features directly out of the box, Odoo hides many useful features behind a paywall.
Odoo and ERPNext are both good programs, with small but crucial differences
However, this also means that Odoo can and must afford to be more user-friendly. “Odoo Studio”, for example, is a very nice application that ERPNext cannot offer. Many of the modules that offered in the app store are also of high quality, although sometimes expensive. With ERPNext, you should ideally bring some computer skills by yourself in order to be able to customize the program in a similar way.
Users of ERPNext can look forward to easy scalability and the hassle-free expansion of their ERP-software. You can connect a new production line to the ERP network without having to worry about needing expensive modules or additional users.
ERPNext also gives you easy access and control over your own data. You can easily export and save your company data in many common formats and even feed it into other programs. It is similarly easy to connect third-party programs to ERPNext.
The bottom line is that Odoo is prettier, somewhat more powerful in the context of German legal systems and can be customized without programming skills. ERPNext has no significant extra costs, is more flexible in its application and can be easily scaled up.
ERPNext |
Odoo |
Advantages |
Advantages |
|
|
Disadvantages |
Disadvantages |
|
|
