ERPNext vs Odoo

Two open-source ERP systems compared in plain English, for Australian businesses

The Short Answer

ERPNext and Odoo are both open-source ERP systems: one system for stock, purchasing, sales, manufacturing, projects and more. The biggest difference is how you pay. ERPNext is fully open source with no paid edition and no per-user licence. Odoo has a free Community edition and a paid Enterprise edition charged per user, with a wider catalogue of ready-made apps.

For most Australian businesses the more important question is not which product is better, but which processes the ERP has to run, how much it will need to change to fit, and whether it will run alongside the accounting software you already have. A disclosure: we implement and customise ERPNext. We have tried to set out both fairly, and we'll tell you if Odoo or something smaller suits you better.

Which one suits you?

  • Lean towards ERPNext if you want to avoid per-user licences, expect to customise forms and workflows to fit how you work, and mainly need stock, purchasing, manufacturing or projects.
  • Lean towards Odoo if you want a wide set of ready-made apps (including website and e-commerce) from one vendor, and are comfortable paying per user for Enterprise.
  • Consider neither if the real problem is two existing systems that don't talk to each other. Connecting them is often cheaper than a new ERP.

Licences and How You Pay

From the vendors' own pages, checked November 2026. Prices change, so check current plans before you budget.

ERPNextOdoo
LicenceOpen source, GPL v3. One edition.Community: open source, LGPL v3. Enterprise: proprietary, needs a valid subscription.
How you payNo per-user licence. Frappe Cloud hosting is priced by server capacity, or you host it yourself.Enterprise is a per-user subscription. One app is free with unlimited users on Odoo Online.
Hosting optionsFrappe Cloud (managed) or self-hosted.Odoo Online (cloud), Odoo.sh (for custom development, extra hosting cost) or on-premise.
Paid-only featuresNone, according to Frappe: the whole product is open source.Yes. Some apps and features are Enterprise only, so check the edition shown in any demo.

Sources: ERPNext on GitHub (GPL v3), frappe.io/erpnext, Odoo licences, odoo.com/pricing.

How They Compare in Practice

ERPNextOdoo
Range of ready-made appsCovers the core of an operating business: stock, buying and selling, manufacturing, projects, CRM and assets.A wider catalogue of apps, including website, e-commerce and marketing tools, plus third-party modules.
CustomisationMany changes made inside the system (custom fields, forms, scripts, workflows) on the Frappe Framework.Customised through modules; Odoo.sh supports teams doing custom development.
Cost as you add staffNo user-based licence, so adding users mainly affects hosting capacity and support.On Enterprise, cost grows with the number of users.
UpgradesMajor versions need testing, especially with custom code.Major versions need testing; heavily customised systems take more work to move.
SupportFrappe Cloud support, implementation partners or your own team.Odoo support with Enterprise, plus partners for implementation.

Keep Your Accounting Software, or Replace It?

Both systems include accounting, so a common sales pitch is to move everything across. For many Australian businesses that is the hardest part of the project and the least useful: the accounting system already handles the ledger, GST and BAS, payroll and Single Touch Payroll, bank feeds and your accountant's access, and it usually works.

The approach we usually recommend is to keep the accounting software and use the ERP for what it doesn't do well: stock, purchasing, manufacturing, jobs and the approvals between them. The two are connected, so invoices, bills and stock values flow across once, without double data entry. Whichever ERP you choose, ask early how that connection will work and who looks after it.

More on this approach: ERPNext alongside your accounting system.

Before You Choose Either

  • Map the processes the ERP must run, as they really happen today, before you watch any demos.
  • Ask both vendors or partners to demonstrate your own examples, on the edition you would actually buy.
  • List what you would customise, and ask how each change survives a version upgrade.
  • Compare cost over several years: licences or hosting, implementation, data migration, integrations and support.
  • Decide who supports the system after go-live: the vendor, a partner or your own team.

The full list is in our ERP selection checklist. For cost, time and the usual risks, see the ERP implementation FAQ.

ERPNext vs Odoo FAQs

Neither is better for everyone. ERPNext is fully open source with no paid edition, and its hosting is priced by server capacity rather than per user. Odoo has a free Community edition and a paid Enterprise edition charged per user, with a larger set of ready-made apps. The better choice depends on which processes you need to run, how much you expect to customise, and who will support it.

The software is. ERPNext is released under the GPL v3 open-source licence, and Frappe (the company behind it) says there are no features held back behind a paid edition. You still pay for hosting (on Frappe Cloud or your own servers), and for implementation, customisation and support.

Odoo Community is free and open source under the LGPL v3 licence. Odoo Enterprise is proprietary and needs a paid subscription for the right number of users. Odoo also offers one app free with unlimited users on its own cloud hosting. Many of the features businesses look at in demos are Enterprise features, so check which edition a demo is using.

Yes, and that is often the sensible way to use them. Both include accounting, but many Australian businesses keep their existing accounting software for the ledger, GST and BAS, payroll and their accountant, and use the ERP for stock, purchasing, manufacturing, jobs and workflows. The two are then connected so sales, bills and stock values flow across without being typed in twice.

Both can be customised heavily. ERPNext is built on the Frappe Framework, and many changes (custom fields, forms, scripts and workflows) can be made inside the system without changing the core code. Odoo is customised through modules, and the Odoo.sh platform exists for teams doing custom development. In either case, keep customisations in separate, documented modules so upgrades stay manageable.

We implement and customise ERPNext, so we are not neutral in the sense of having no view. What we will do is tell you plainly if Odoo, another system, or a smaller add-on to what you already have is the better fit, and help you test that before you commit.

Not Sure You Need an ERP at All?

Sometimes the answer is a new system. Often it is connecting the ones you have and fixing the process around them. Our $5,000 Process & Systems Audit maps how work and data move through your business and gives you a written, prioritised plan before you spend on software.

Book a free initial chat

Choosing Between ERPNext and Odoo?

Tell us what you're trying to fix and what you already run. We'll give you an honest view of which option fits, including whether you need a new system at all.

What happens next
  1. We read your message and reply within one business day.
  2. If it helps, we book a free chat (usually 30 minutes) about your systems and what you're trying to fix.
  3. You get an honest view: whether we can help, roughly what's involved, or who'd be a better fit.

Free initial chat. No sales pressure - if we're not the right fit, we'll say so.

Prefer to talk? Call 1300 470 091

Got a spec or files? Email [email protected]

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Part of our guide: Choosing Business Software

See also