Odoo Enterprise vs Odoo Community Edition: What are the Differences?

As one of the best open-source ERPs in the world, Odoo is a valuable solution for businesses because of its usability as well as the flexibility to customize, scale, and integrate third-party applications into a company’s main IT system.

Based on the number of active users and successful implementations, Odoo currently offers two editions on the market: Odoo Community and Odoo Enterprise Edition, to fulfill the diverse needs of businesses.

What is Odoo ERP?

Odoo ERP (formerly OpenERP) is an open-source platform that provides a suite of business management tools such as CRM, E-commerce, Manufacturing, Accounting, etc., aimed to fit multiple business purposes in any industry.

Operating under Odoo SA, the ERP is the all-in-one business management software that is used by over 7 million users worldwide, regardless of their size (or budget).

With strong community support and forums, Odoo has been ranked in the top 10 Best ERPs in the market for a wide range of companies, from startups (1 user) to large corporations (300,000+ users), due to its agility and affordability.

Besides over 30 core modules that cover the whole spectrum of business processes, Odoo offers 30,000+ tailor-made apps developed to suit every company’s evolving needs, making it a very versatile and customizable software with a strong support system from the developer community.

“Which version of Odoo should I use? Community or Enterprise?” is one of the most common questions we get when we help businesses to explore Odoo and implementing the system, as the best Odoo Partner in APAC.

In this article, we will summarize the main differences between these two editions and help you to find out which version is the right one for your company.

A Brief History of The Two Editions

Odoo Community

In general, ERP systems are classified into two types: open-source software and proprietary software. 

While proprietary software refers to a system with encrypted code, open-source (community) software refers to a system with code that is freely available to the public. This open-source nature enables businesses to access and customize the system's code with their own IT team without incurring license fees. Otherwise, they can seek the assistance of an IT partner to implement open-source software.

When entering the market in 2005, Fabien Pinckaers - founder of Odoo, released the Odoo Community Edition, formerly known as TinyERP, with the vision of delivering free software that would change the enterprise world. Thousands of businesses have benefited from the set of business applications encompassing sales (sales, CRM, PoS), operations (inventory, purchase, manufacturing), human resources, and other productivity tools.

Odoo Enterprise

In 2015, Odoo Enterprise was released as the proprietary edition of Odoo ERP software. Instead of solely providing an open-source platform and supporting services, it was going to help businesses further optimize their business models with additional features and modules with license fees.

The switch was conducted to resolve two main challenges of the company at that time.

1. On the business side, Odoo had to make its revenue stream sustainable. New customers tended to pay for support services for the first years. If everything worked well, they wouldn't renew for the next few years. 
2. As far as the open-source version is concerned, this market is growing fast due to the increase in competition and customer expectations. The Odoo Community consequently could be frowned upon. It did not have any upgrades and was superior to others. Therefore, according to the Odoo team, the development of Odoo Enterprise became vital to building a team of developers and developing further R&D.

That was how Odoo Enterprise was a prime contender for the free and open-source version.

Core Differences Between Odoo Community & Odoo Enterprise

There are four main differences between Odoo Community vs Odoo Enterprise, including pricing, modules/features, hosting options, support, and bug fixes/upgrades services.

Price

Odoo Community, an open-source ERP version, is available for businesses to download directly from the Odoo Official Website at no cost. However, it is recommended that users either have an in-house technology team to implement and maintain the ERP system or seek additional support from an official Odoo partner.

Conversely, Odoo Enterprise is the paid version of the open-source model. Users can install a suite of applications included in their Enterprise pack - tailored to their specific business needs. However, this does not mean Community version users cannot access specific modules from the Enterprise version. You can simply pay the corresponding fee and enjoy the extra modules and features that you need.

The pricing of Odoo Enterprise is determined by five components:

1. Number of users: Billed monthly and invoiced annually.
2. Applications: Billed similarly to the number of users.
3. Hosting type.
4. Implementation services: Based on user preferences.
5. Additional costs: Integration with other systems, such as additional installation of delivery services or e-commerce platforms.

You can get a quote estimation of Odoo Enterprise implementation by using the Odoo cost calculator.

Modules and Features

Both editions provide a whole suite of core business modules. However, as the vision of Odoo Enterprise to reach “80% open source, 20% proprietary” customers, the most outstanding benefit of the Enterprise version is it covers both basic modules and as well as additional apps and features for niche markets and specific industry needs such as Field Service or Marketing Automation.

Some of the significantly advanced features developed in the Odoo 17 Enterprise version are listed below:

Full Accounting Function

Accounting is an indispensable activity in any business, and Odoo includes an Accounting module in either edition.

When comparing Odoo Enterprise vs Community, it’s important to note that Odoo Community only assists users with invoicing, payments, and basic bookkeeping. However, Odoo mentions that the Accounting module is not available for Community users in the current version.

Meanwhile, Odoo Enterprise’s users can get a full suite of accounting functions. It encompasses a broad range of financial reporting functions, most notably the Dynamic accounting reports, which allow users to view detailed reports of balance sheets, profits, and losses on the same page by using the drill-down approach.

Odoo 17 introduces several enhancements that were not available or updated in previous versions:

• Tax Management: Includes configurations for tax reports and handling of fiscal positions.
• Customer Invoices: Features for managing customer credits and outstanding payments.
• Vendor Bill Management: Support for multi-currency transactions and automated reconciliation.
• Payment Processing: Now includes batch payments and bank reconciliation features.
• Bank and Cash Accounts Management: Bank synchronization and cash management features, including support for multiple bank accounts and currencies.
• Financial Reporting: Customizable reports, including dynamic accounting reports and AI-powered insights.
• Expense Management: Integration and automation features.
• Online Payments: Support for more payment gateways and security features.
• Fiscal Localizations: Support for more countries and localization settings.

Additionally, Odoo 17 continues to develop AI functions from Odoo v13 and later, in addition to budgeting and localization functions from previous versions. You can check the Odoo 17.0 documentation for more information.

Full Advanced Manufacturing

Odoo Enterprise subscriptions allow you to enjoy a fully functional solution with centers, Control Panels, and Scheduling capabilities. Unlike Manufacturing in the Odoo Community, which assists users in planning their manufacturing activities based on resource availability forecasts, Odoo Enterprise Manufacturing allows users to schedule their production over time based on demand forecasts.

In addition, Odoo users can plan their work orders in two ways: by production or by work centers. Traditionally, they can plan the manufacturing process by production with a single document (one place, one person, and one step). Planning by work centers, on the other hand, is advantageous for manufacturing processes that necessitate additional documentation (steps).

The Workcenter Control Panel has also been enhanced to help users Track Time, Display Worksheets, Register Production, Integrate Quality Checks, In Process Alerts, and Record Serial/lot numbers.

Additionally, Odoo 17 introduces new features such as Work Centre Planning, which aggregates workload data from multiple work centers into a unified view, and Components Demand Propagation, which ensures changes in component demand are reflected in pre-production pickings.

Multi-company Automated Flows

Both the Odoo Community and Enterprise editions offer a multi-company environment, allowing companies to seamlessly centralize the management of various branches with multiple warehouses, customers, suppliers, and products.

This feature enables you to manage sub-companies and records, set users/accounts for each company, and generate reports for multiple entities simultaneously without switching interfaces. You can also share data (such as products and services, customers), with each company’s specific information recorded separately.

In the latest version, the inter-company transaction feature supports sales/purchase orders and invoices/bills in this multi-company environment. Now, Odoo 17 introduces enhanced inter-company transaction capabilities, including automated synchronization of counterpart documents for orders and invoices, ensuring seamless and accurate inter-company operations.

The key difference between Odoo Enterprise and Community is that multi-company flows can be automated in the paid version. For example, if Company A buys products/services from Company B, the purchase order of Company A will directly create a corresponding sales order in Company B. Meanwhile, in the Odoo Community, users have to do this manually.

Odoo Studio Customization

Odoo Studio, available exclusively in Odoo Enterprise, is a highly acclaimed tool that empowers users to create custom apps within minutes, all without any coding knowledge.

Screen Customization, Report Designer, Menu Editor, and Apps Creator are some of the standout features of this module, helping you tailor your own app to your specific needs. Odoo 17 continues to offer these features, with enhancements such as the ability to add or modify fields, views, models, automated actions, PDF reports, and approval rules. Additionally, Odoo 17 supports 20 different field types with various default widgets, providing a more comprehensive set of tools.

However, Odoo Studio cannot replace a skilled consultant or developer who can provide solutions in base Odoo with their expertise. Further, combining Odoo Studio with custom code can cause issues in custom apps if done by non-Odoo experts.

The user interface in Odoo 17 has also been improved, offering a streamlined process for accessing and closing Studio, which enhances the overall user experience. These advancements make Odoo 17 Studio a more robust and user-friendly solution compared to its predecessor.

Better Human Resource Management

The Human Resource modules in the Enterprise version have more advanced features, allowing users to take more operational action in terms of Employee Referrals, Payroll, and Appraisal.

The Payroll Accounting application, which automates the creation of journal entries, remains a notable feature.

Odoo 17 introduces several enhancements in its Enterprise version, such as detailed payroll processing, including work entries and payslip creation, and handling country-specific localizations to ensure compliance with local rules and taxes. 

The new deferred time off feature allows time off taken after payslips are validated to be applied to the following pay period, ensuring accurate time off balances.

Additionally, Odoo 17 supports multi-company configurations with different localization settings for each company, enhancing the flexibility and accuracy of HR management.

These features are designed to improve the effectiveness of HR management while also enhancing employee performance.

Better & Friendlier UI/UX

Odoo Enterprise offers flexibility in the user interface in addition to the functionality of modules and features. In comparison to its free version, the paid version is available on both mobile apps and desktops, whereas Odoo Community only allows users to access by desktop or mobile via a browser.

Additionally, Enterprise users are also able to access the Barcode Scanner feature via mobile and desktop.

Odoo 17 introduces a redesigned user interface that is more modern, user-friendly, and efficient. The new UI includes features such as dark mode, advanced search functions, and draggable pop-up wizards, enhancing the overall user experience. The interface is also more responsive, ensuring it works seamlessly on any device.

The introduction of the Milk theme offers a clean and minimalist design, providing a fresh look to the overall interface. Additionally, the app designs have been updated to be more intuitive and visually appealing, making navigation and usage smoother and more enjoyable.

You can easily see a more comprehensive list of feature comparisons between the two versions published by Odoo here.

Hosting Options

Compared to the Enterprise edition, Odoo Community users can either manage the hosting themselves or use third-party vendors.

• On-Premise server: Hosting Odoo on local servers. This option is most suitable for larger enterprises with adequate internal resources (IT team, software, hardware, and budget).
• Cloud hosting: Hosting on server hosting providers (AWS, Digital Ocean, DreamHost, Google Cloud, CMC, OVH, etc.). Odoo partners like Portcities cooperate with world-leading server hosting providers to ensure reliable, secure, and scalable hosting solutions. This collaboration allows businesses to benefit from high-performance infrastructure, expert support, and seamless integration with Odoo, ensuring optimal performance and uptime for their ERP systems.

If you use the paid version of Odoo - Odoo Enterprise - the above options are still available to you, and you are also eligible for Odoo's official hosting:

• Odoo SaaS (Odoo Online): An online cloud platform suitable for newcomers to Odoo Enterprise, as this multi-tenant model is available online and managed by Odoo. However, users are not able to install any custom modules, including the ones on the Odoo store. Odoo 17 enhances database management with options to duplicate databases for testing, rename databases, and use custom domain names.
• Odoo.sh: Odoo’s advanced cloud platform with GitHub integration. Users need to either have technical knowledge for management and maintenance or consult with one of the official Odoo partners located all over the world, such as Portcities. Odoo 17 improves support for automated testing and continuous integration, making it easier to manage development workflows.

These Odoo hosting options are better suited for small to medium-sized businesses rather than larger corporations that require complex infrastructure, heavier systems, and higher user capacity. 

In general, choosing the right hosting provider is influenced by multiple factors, including business size, budget, and user accessibility, which can be a confusing process.

Support, Bug Fixes, and Upgrades

Bug Fixing Service

In Odoo 17, the Bug Fixing Service varies significantly between the Community and Enterprise editions.

Odoo Community does not include bug-fixing services as part of its offering. Users of the Community edition must rely on their in-house team or external partners for bug resolution. This can be challenging without proper guidance, especially for complex issues.

Odoo Enterprise, on the other hand, includes comprehensive bug-fixing services within the license price. This service covers bugs in the software and any additional modules included in the Enterprise package. Customers can submit bug reports through various channels such as web forms, phone numbers, or via an Odoo Partner.

When using the Bug Fixing Service in Odoo Enterprise, there are a few important considerations:

• Odoo provides support only if the bug originates from the base code, not from customizations or third-party modules.
• The unexpected behavior must be replicable on Odoo Runbot or a demo instance to qualify for support.

This structured approach ensures that users receive timely and effective guidance for resolving issues, enhancing the overall reliability and performance of their ERP system.

Support Service

Odoo Community users primarily rely on community forums and resources for assistance. While these resources can be helpful, they may lack the personalized guidance needed for complex issues.

For more comprehensive support, businesses can collaborate with global Odoo partners. These partners, such as Portcities, offer full support in both technical solutions and training, regardless of your business location. An experienced Odoo Partner thoroughly understands your system and can propose the most feasible solutions to streamline your business processes.

On the other hand, Enterprise users benefit from dedicated partner support, which includes expert guidance, troubleshooting, and tailored solutions to meet specific business needs. This support is included in the Enterprise license and covers both functional support and bug fixes.

Odoo only offers functional support and bug fixes for the last three major versions, ensuring that users receive assistance for the most recent and stable releases. As of 2024, the currently supported versions are Odoo 17.0, Odoo 16.0, and Odoo 15.0. 

To take full advantage of these services, it is advisable to migrate to the latest Odoo version.

Upgrades

Compared to the Enterprise edition, Community system upgrades can be managed independently using tools like OpenUpgrade. 

This allows businesses to move to newer versions while maintaining their current setup. However, it’s important to note that only the core platform is supported for upgrades, without any customizations or third-party modules. For a more seamless experience, transitioning to the Enterprise edition is an option. By upgrading to Enterprise, your database will be upgraded for free, and you will gain access to additional features and support.

Enterprise users benefit from comprehensive upgrade assistance included in their license to use. This service ensures that users can upgrade to better and faster versions with improved functionalities. The upgrade process is streamlined and supported, covering both the core platform and any included modules. For customized systems, Odoo Partners, such as Portcities, can provide expert guidance and support to ensure a smooth transition.

Regardless of the edition, it is crucial to plan and test the upgrade process thoroughly. For more information on Community and Enterprise upgrades, it is better to consult an Odoo implementation partner of your choice.

Choosing between Odoo Community vs Enterprise: Which is the right Odoo edition for your business?

When implementing the Odoo ERP system, a careful assessment of which version is the right one for your business is very crucial. To be more specific, because you make your decision, you should answer these fundamental questions:

1. Define your implementation's scope. Which Odoo modules/applications do you want to use in your business?
2. Determine your company's in-house capabilities. What is the size of your company? What is the budget that you plan to set aside for system implementation? How is your in-house technical team performing?

If you are hesitant to implement Odoo Enterprise for the first time, you can start with small solutions in Odoo Community and upgrade when needed. You can upgrade from Community to Enterprise anytime.