Reference

Odoo ERP Glossary

The 24 terms that actually come up when scoping, budgeting, or rescuing an Odoo project — defined without vendor spin.

Odoo: Odoo is a modular open-source business management suite covering accounting, sales, CRM, inventory, manufacturing, HR, and eCommerce. Its core framework is licensed under LGPLv3, while the Enterprise edition adds proprietary apps and support under a per-user subscription.
Odoo Community vs Odoo Enterprise: Community is the free, open-source edition with the core apps and no vendor support. Enterprise adds proprietary apps (full accounting, Studio, e-signature, advanced MRP and quality), upgrade services, and support, licensed per user per month.
Odoo Studio: Odoo Studio is the Enterprise-only, no-code editor for changing forms, fields, views, automations, and reports from the browser without writing Python. It is the fastest route to light customization but does not replace framework development for complex logic.
Odoo.sh: Odoo.sh is Odoo's managed platform-as-a-service hosting tier. It supports custom code repositories, staging and development branches, automated backups, and Git-based deploys — unlike Odoo Online, which does not allow custom modules.
Odoo Online (SaaS): Odoo Online is Odoo's fully hosted SaaS offering. It is the lowest-maintenance option and supports Studio customization, but it does not allow custom Python modules or direct database access.
ORM (Object-Relational Mapping): Odoo's ORM is the Python layer that maps model classes to PostgreSQL tables and enforces access rules, constraints, computed fields, and onchange behaviour. Nearly all Odoo customization is written against the ORM rather than raw SQL.
Odoo module: A module (or app) is a self-contained package of models, views, data, and business logic that extends Odoo. Modules declare dependencies in a manifest file and can inherit from and override existing modules without editing their source.
OCA (Odoo Community Association): The OCA is a non-profit that maintains thousands of free, peer-reviewed Odoo modules on GitHub. OCA modules often cover localization, reporting, and connector gaps in the standard edition, and are a common way to avoid paying for bespoke development.
Odoo implementation: An Odoo implementation is the project that takes a business from requirement discovery through configuration, data migration, integration, user acceptance testing, training, and go-live. Effort is usually driven by process complexity and data quality far more than user count. Implementation services.
Odoo project rescue: A project rescue is a structured intervention on a stalled, over-budget, or unusable Odoo deployment. It typically begins with a fixed-fee technical and process audit, then stabilises the environment before delivering a re-costed, milestone-based recovery plan. Project rescue.
ERP migration: ERP migration is the move from an incumbent system (QuickBooks, Sage, NetSuite, SAP Business One, Tally) to Odoo. The critical deliverables are a reconciled opening trial balance, mapped chart of accounts, and validated master data — not simply exported CSV files. Migration services.
Odoo version upgrade: A version upgrade moves an existing database to a newer Odoo release (for example Odoo 16 or 17 to Odoo 18). It involves database schema migration plus refactoring custom modules against changed APIs, and is normally rehearsed on a staging branch first. Odoo 18 upgrade guide.
MRP (Manufacturing Resource Planning): Odoo MRP plans and executes production using bills of materials, work orders, work centres, and routings. It integrates with Inventory for component availability and with Quality and Maintenance for shop-floor control. Odoo for manufacturing.
BoM (Bill of Materials): A bill of materials lists the components, quantities, and operations required to produce a finished good. Odoo supports multi-level BoMs, phantom (kit) BoMs, by-products, and variant-specific component lines.
Double-entry inventory: Odoo models stock movements as transfers between locations rather than as increments and decrements, so every quantity leaving one location must arrive somewhere else. This is what makes stock valuation auditable and traceability complete.
Chart of accounts (CoA): The chart of accounts is the structured list of ledger accounts used for financial posting. Odoo installs a localized CoA per country package, and mapping the legacy CoA to it is usually the highest-risk step of a finance migration.
Making Tax Digital (MTD): Making Tax Digital is the UK HMRC requirement that VAT records be kept digitally and returns submitted through approved software using an API. UK Odoo deployments must have MTD-compatible VAT submission configured before the first return falls due. Odoo for UK businesses.
FTA e-invoicing (UAE): The UAE Federal Tax Authority governs VAT compliance and the phased rollout of mandatory structured e-invoicing. UAE Odoo configurations need FTA-compliant tax codes, TRN handling, and invoice formats aligned with the applicable phase. Odoo for UAE businesses.
ASC 606: ASC 606 is the US GAAP standard for recognising revenue from contracts with customers, based on identifying performance obligations and recognising revenue as they are satisfied. In Odoo this is handled with deferred revenue accounts and subscription or milestone-based invoicing. Odoo for US businesses.
Avalara / sales tax automation: Avalara AvaTax is a third-party service that calculates US sales tax by jurisdiction at transaction time. It is commonly connected to Odoo where multi-state nexus makes static tax rules unworkable.
UAT (User Acceptance Testing): UAT is the phase where the business, not the implementer, runs real transactions end to end on a copy of production data and formally signs off. Skipping or compressing UAT is one of the most reliable predictors of a failed go-live. Warning signs of a failing project.
Go-live cutover: Cutover is the controlled switch from the legacy system to Odoo: freezing legacy transactions, loading final balances and open items, reconciling, and reopening for business. It is scheduled, rehearsed, and reversible, usually across a weekend or period close.
Total cost of ownership (TCO): TCO for an ERP covers licensing, hosting, implementation, data migration, integrations, customization, training, and ongoing support over several years. Licence price is typically the smallest component of a mid-market Odoo TCO. Implementation cost guide.
Scope creep: Scope creep is the uncontrolled addition of requirements after a project baseline is agreed. In ERP projects it usually appears as custom reports and bespoke workflows replacing standard functionality, and is the most common cause of budget overrun.

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