Odoo
Odoo is an open-source suite of integrated business applications centered on enterprise resource planning (ERP) and customer relationship management (CRM), offering modular tools for functions such as accounting, inventory management, eCommerce, manufacturing, and human resources.[1] Developed by Odoo S.A., a Belgian software company founded in 2005, it originated as TinyERP before evolving into OpenERP and being rebranded as Odoo in 2014 to reflect its expansive ecosystem.[2] With over 50,000 community-contributed apps available, Odoo emphasizes customization, scalability, and affordability, making it suitable for businesses of all sizes from startups to large enterprises.[1] The platform's open-source nature under the GNU LGPLv3 license allows free access to its core code, fostering a global community of developers who contribute enhancements and integrations, while Odoo S.A. provides enterprise editions with additional support and hosting options.[1] As of 2025, Odoo powers more than 15 million users worldwide, positioning it as one of the most widely adopted business management solutions globally.[3] Its all-in-one architecture reduces the need for disparate software tools, enabling seamless data flow across modules to streamline operations and improve efficiency.[1] Key to Odoo's success is its user-friendly interface, built on modern web technologies like Python and PostgreSQL, which supports rapid deployment either on-premises or in the cloud.[1] The company, headquartered near Brussels, employs over 6,000 people across multiple continents and continues to innovate through annual releases that incorporate user feedback and emerging technologies such as AI-driven automation.[3] Despite its growth, Odoo maintains a commitment to accessibility, offering a free community edition alongside paid plans starting at low costs to democratize advanced business software.[1]Overview
Description and Purpose
Odoo is an all-in-one enterprise resource planning (ERP), customer relationship management (CRM), and business applications platform developed in Belgium since 2005.[4][1] The platform's core purpose is to streamline key business operations—including sales, inventory management, accounting, human resources, and eCommerce—through a unified, integrated interface that enhances efficiency and reduces silos across departments.[1] Odoo's key characteristics include its modular design, which enables users to selectively install and activate specific applications as needed, combined with web-based access for seamless deployment and scalability that supports organizations from startups with a single user to large enterprises with thousands of users.[3][1] As of late 2025, it serves over 15 million users worldwide and provides built-in support for multiple languages and currencies to facilitate global operations.[3][5][6]Version Support
Odoo maintains an annual release cadence for its major versions, with new iterations typically launching in the fall to balance innovation and stability. For example, Odoo 18 debuted in late 2024, followed by Odoo 19 in September 2025 during the Odoo Experience event in Brussels.[7][8] Each major version receives three years of core support, encompassing bug fixes, security patches, and compatibility updates to ensure reliable operation for users.[9] The support structure differentiates between short-term intermediary releases—such as those on the Odoo Online platform—and long-term major versions. Short-term versions focus on rapid feature testing and receive bug fixes for six months post-release. Long-term versions offer extended coverage, including security updates and migration guidance; following a July 2025 policy update for Enterprise subscriptions, all versions receive ongoing support indefinitely, with a 25% surcharge for those older than three major releases.[9][10][11] Upgrading between versions relies on Odoo's built-in migration tools, which automate database schema migrations, resolve compatibility issues in modules, and support incremental or direct paths from older releases like Odoo 17 to 19. These processes preserve data while adapting to architectural changes, often requiring minimal custom intervention for standard setups.[12][13] Odoo 19's 2025 enhancements emphasize AI-driven automation for streamlining workflows and enhanced mobile responsiveness for better cross-device usability, leveraging the platform's modular design to integrate version-specific applications seamlessly.[7][14]History
Founding and Early Development
Odoo traces its origins to 2005, when Fabien Pinckaers founded the company in Belgium and began developing TinyERP, an open-source enterprise resource planning (ERP) software initially centered on accounting functionalities to simplify financial management for businesses.[15][16] The official release of TinyERP as open-source software occurred in 2006, enabling widespread adoption and community contributions that accelerated its evolution from a niche accounting tool into a more comprehensive platform.[17] By 2008, the software had expanded significantly, incorporating customer relationship management (CRM) and inventory management modules to address broader operational needs of growing enterprises.[18][19] During its early years, TinyERP faced stiff competition from established proprietary ERP systems like SAP, which dominated the market but were often prohibitively expensive and complex for small and medium-sized enterprises (SMEs).[20] To counter this, the project prioritized affordability and accessibility, positioning itself as a cost-effective alternative tailored specifically for SMEs seeking scalable solutions without high licensing fees.[21] A pivotal innovation in TinyERP's early versions was its modular architecture, which allowed users to deploy and customize individual components flexibly, fostering adaptability and reducing the overhead of monolithic systems.[19] This design principle laid the groundwork for the software's extensibility and contributed to its growing popularity among developers and businesses. In 2008, reflecting its maturation and expanded capabilities, the project was rebranded as OpenERP.[22]Rebranding and Major Milestones
In 2014, OpenERP underwent a significant rebranding to Odoo, marking a pivot toward a broader ecosystem that extended beyond traditional ERP functionalities to include content management systems, eCommerce, and point-of-sale solutions. This shift was accompanied by the launch of the Odoo Apps store, enabling third-party developers to contribute modules, and the introduction of a proprietary Enterprise edition featuring exclusive apps and support services to monetize the platform's growth. The rebranding was supported by a $10 million funding round aimed at accelerating research and development.[23][24][2] The rebranding coincided with the release of Odoo 8.0 in September 2014, which introduced a drag-and-drop website builder to facilitate user-generated content and online presence without coding expertise. Subsequent major versions built on this foundation: Odoo 10.0, launched in October 2016, enhanced mobile accessibility with a dedicated responsive app for iOS and Android, enabling on-the-go management of business operations. By Odoo 16.0 in October 2022, the platform integrated initial AI-driven features, such as automated data analysis and predictive insights in modules like inventory and sales. The latest milestone, Odoo 19.0, released in September 2025 during the Odoo Experience event, incorporated advanced compliance tools, including updated DIOT reporting for tax classifications and regulatory adherence in multiple locales.[25][26][7] Odoo's growth accelerated post-rebranding, reaching approximately 7 million users by 2020 through expanded international adoption and modular scalability. By 2025, the user base had surpassed 13 million, reflecting a 42% year-over-year increase in annual recurring revenue to €650 million, bolstered by global offices in over 20 countries. Key to this expansion were the annual Odoo Experience events, inaugurated in 2018 as Europe's largest tech and business conference for the ecosystem, attracting thousands for keynotes, workshops, and partner networking starting with the Brussels edition.[27][28][29] Strategically, the post-2014 era emphasized cloud hosting via Odoo Online and Odoo.sh platforms to simplify deployment and scalability for small to medium enterprises, reducing infrastructure barriers. This focus complemented deepened partnerships, such as the enhanced alliance with Google Cloud announced in 2024 to optimize global data processing and AI capabilities, enabling seamless integration for Odoo's hosted services.[2][30]Technical Architecture
Core Components
Odoo's backend is primarily developed in Python, utilizing an Object-Relational Mapping (ORM) system to manage business logic and interact with the underlying data structures. The ORM provides a high-level interface for defining models, fields, and relationships, enabling developers to perform CRUD operations and complex queries without writing raw SQL. This abstraction layer ensures consistency in data handling across modules and supports features like automatic schema migration during updates.[31] Odoo relies on PostgreSQL as its exclusive relational database management system for data persistence, offering ACID compliance, advanced indexing, and scalability for enterprise workloads. PostgreSQL's support for JSONB fields and full-text search enhances Odoo's handling of semi-structured data and reporting needs. A key feature is its native multi-company support, where data for different companies is isolated within the same database instance using company-specific fields and access rules, allowing seamless operations across organizational boundaries without separate databases.[32][33] On the frontend, Odoo introduced the OWL (Odoo Web Library) JavaScript framework in version 14, released in 2020, to construct dynamic and responsive user interfaces. OWL is a declarative, component-based system loosely inspired by React and Vue, using QWeb templates enriched with directives for state management, event handling, and rendering efficiency. This framework improves performance through virtual DOM diffing and hooks, making it suitable for complex, interactive applications like dashboards and forms. Additionally, QWeb serves as Odoo's primary templating engine for generating reports, views, and HTML fragments, based on XML syntax with directives for loops, conditionals, and data binding to produce customizable outputs such as PDFs and web pages.[34][35] The server architecture of Odoo adopts a multi-tenant design, enabling a single instance to host and serve multiple independent databases, which is particularly advantageous for SaaS deployments by optimizing resource utilization and simplifying maintenance. Integrations with external systems are facilitated through XML-RPC and JSON-RPC protocols, as well as the new JSON-2 API introduced in Odoo 19 (September 2025), which uses HTTP POST requests with JSON payloads for model methods and is recommended for new integrations. The legacy XML-RPC and JSON-RPC endpoints are scheduled for removal in Odoo 20 (fall 2026). These APIs expose services for authentication, database management, and object manipulation, allowing remote procedure calls in various programming languages while supporting secure, authenticated access to core functionalities.[33][36] Security in Odoo's core includes role-based access control (RBAC) implemented via user groups and record rules, where permissions are assigned at the model, field, and operation levels to enforce granular data visibility and modification rights. Audit logs are maintained through the built-in logging mechanism, recording user actions, errors, and system events in the ir.logging model for traceability and compliance purposes. These features ensure robust protection against unauthorized access and provide tools for monitoring and auditing activities within the system.Development and Customization
Odoo development primarily involves extending its modular architecture through custom modules, leveraging a combination of programming languages and tools to adapt the system to specific business needs. The backend logic, including data models, business rules, and controllers, is implemented using Python, which handles server-side operations and integrates with Odoo's ORM (Object-Relational Mapping) system. Frontend interactions, such as custom widgets and user interface components, are built with JavaScript, utilizing Odoo's OWL (Odoo Web Library) framework for reactive and efficient rendering.[37] Views, layouts, and static data configurations are defined using XML, which describes the structure of forms, lists, and reports without embedding executable code. This tripartite language stack enables developers to create seamless extensions while maintaining compatibility with Odoo's core components, such as its modular addons system. For users without programming expertise, Odoo Studio provides a no-code interface to perform customizations directly within the application. This tool allows the addition of fields, modification of views, creation of new models, and setup of automated workflows through a drag-and-drop editor, generating underlying XML and Python code transparently.[38] For more advanced development, Odoo offers scaffolding commands via its command-line interface to rapidly generate module skeletons, including essential files like manifests, models, and views, streamlining the initial setup process.[39] Inheritance mechanisms further facilitate customization by allowing modules to extend existing models—either through classical inheritance for creating new subclasses or prototype inheritance for delegating and overriding specific behaviors—ensuring modifications do not alter core code directly.[40] Best practices in Odoo development emphasize the addons structure, where each module resides in its own directory within the addons path, containing Python files for logic, XML for definitions, and static assets like JavaScript and CSS, promoting modularity and easy upgrades.[41] Testing is integrated via Odoo.sh, Odoo's official PaaS platform, which supports CI/CD pipelines for automated builds, unit tests, and deployments, reducing errors in custom code. Deployment often utilizes Docker containers for isolated environments, with official Odoo images available on Docker Hub to package applications alongside PostgreSQL databases, enabling scalable and reproducible setups across development, staging, and production. Practical examples of customization include adding custom fields to existing models, such as extending the partner model with a new "preferred language" field using Python inheritance to define the attribute and XML to integrate it into forms, without modifying base files. Similarly, workflows can be tailored by creating automated actions or server actions in Python to trigger sequences like email notifications upon record updates, or by using Studio to visually design approval flows for sales orders, ensuring business processes remain flexible and upgrade-safe.Modules and Features
Built-in Modules
Odoo's built-in modules provide the foundational ERP capabilities, offering integrated tools for various business functions without requiring additional installations or third-party extensions. These modules are pre-installed in the Odoo Community Edition and can be activated as needed, enabling seamless data flow across applications.[42] Sales and CRMThe Sales and CRM modules handle customer interactions from initial contact to deal closure. Lead management captures inbound leads from sources such as emails, VoIP calls, social media, websites, events, and support tickets, with features like predictive lead scoring based on historical data, GeoIP for location detection, live chat integration, and automatic deduplication and enrichment of lead information.[43] Opportunity tracking uses a drag-and-drop pipeline interface with customizable stages, activity scheduling for calls and meetings, and 360-degree visibility into customer interactions including emails, website activity, and orders.[43] Quotation automation allows users to generate and send professional quotes in seconds, converting opportunities directly into sales orders while integrating product availability and delivery details from inventory.[43] These tools support efficient sales processes by automating follow-ups and providing real-time insights into pipeline performance.[44] Finance and Accounting
The Accounting module streamlines financial operations with automated invoicing, where users can create attractive, customizable invoice templates and generate drafts instantly from sales orders, subscriptions, timesheets, or delivery orders.[45] Multi-currency reconciliation handles daily updated exchange rates and employs a smart matching tool that automates up to 95% of invoice-to-payment pairings, supporting international transactions efficiently.[45] Financial reporting complies with International Financial Reporting Standards (IFRS) through dynamic legal statements, accrual or cash-based tax reports, advanced tax configurations (such as taxes on taxes or price inclusions/exclusions), and audit-ready transparency features.[45] These capabilities ensure accurate bookkeeping and regulatory adherence across global operations. Inventory and Manufacturing
Inventory management covers warehouse operations with real-time tracking of stock levels, multi-location support, and automated replenishments to prevent stockouts while optimizing routes and transfers between warehouses.[46] Users can configure storage rules, handle receipts and deliveries, and maintain visibility into product movements via barcode scanning and lot/serial number tracking.[47] The Manufacturing module integrates Material Requirements Planning (MRP) to forecast needs, schedule production based on demand, and manage bills of materials for efficient resource allocation.[48] Quality control is embedded through configurable control points that trigger automated checks during manufacturing orders, ensuring compliance and defect detection at key stages like assembly or final inspection.[48] Together, these features enable precise supply chain oversight and scalable production planning.[49] HR and Project
The HR module, centered on employee management, facilitates onboarding by creating automated plans that trigger a series of activities such as document submissions, training assignments, and departmental introductions upon hiring.[50] It centralizes personnel records, contracts, skills tracking, and hierarchies, supporting recruitment, performance evaluations, and offboarding processes to streamline workforce administration.[51] The Project module aids task management with timesheet tracking for billable hours, integrated directly with HR and accounting for accurate payroll and invoicing.[52] Gantt charts provide a timeline view of tasks, dependencies, progress, and deadlines, allowing teams to filter, group, and assign work dynamically while monitoring overall project timelines.[52] These tools promote collaborative planning and resource optimization across teams.[53] Other Essentials
The Website Builder module offers a drag-and-drop interface for creating and customizing professional websites without coding, including themes, blocks, and SEO tools for rapid deployment.[54] Integrated eCommerce functionality builds online stores with product catalogs, payment gateways, shipping options, and order synchronization to backend inventory and accounting.[55] The Point-of-Sale (POS) module supports retail operations through a web-based system compatible with any device, featuring offline mode, customer/product search, loyalty programs, multi-cashier support, and flexible invoicing with seamless integration to sales and inventory.[56] These modules extend Odoo's core to digital and in-store commerce, ensuring unified customer experiences.