Odoo vs. SAP Business One: Which ERP Suits Growing Companies?

The ERP decision is one of the most important IT investments for mid-size businesses. Two systems keep coming up: Odoo as a flexible open-source challenger and SAP Business One as an established enterprise player.

In this comparison, we analyze both systems honestly - with real numbers, realistic scenarios, and clear recommendations.

Table of Contents

1. Quick Overview: Key Differences
2. Feature Comparison in Detail
3. Cost Comparison: 5-Year TCO
4. Implementation & Rollout
5. Flexibility & Customizability
6. Who Should Use Which System?
7. Our Recommendation

---

Quick Overview: Key Differences

Criterion	Odoo	SAP Business One
License Model	Open Source + Enterprise	Proprietary
Cost (5 Years, 20 Users)	€50,000-€150,000	€150,000-€400,000
Implementation Time	2-6 months	4-12 months
Flexibility	Very high	Medium
Industry Solutions	Community apps	SAP-certified
Target Group	5-500 employees	20-500 employees
Strength	Modularity, price	Integration, stability

Odoo in One Sentence

Modular, modern ERP with fair prices and high customizability - ideal for companies wanting flexibility.

SAP Business One in One Sentence

Proven ERP with SAP quality for mid-size businesses - ideal for companies wanting to play it safe.

---

Feature Comparison in Detail

Financial Accounting & Controlling

Function	Odoo	SAP B1
General Ledger	✅	✅
AR/AP	✅	✅
Fixed Assets	✅	✅
Cost Center Accounting	✅	✅
Budgeting	✅	✅
Consolidation	⚠️ Add-on	✅
Tax Integration	✅	✅
Multi-Currency	✅	✅
Intercompany	⚠️ Enterprise	✅

Finance Verdict: Both systems are solid. SAP B1 has slight advantages with complex corporate structures, Odoo is more flexible for individual requirements.

CRM & Sales

Function	Odoo	SAP B1
Lead Management	✅ Strong	⚠️ Basic
Opportunity Tracking	✅	✅
Quote Creation	✅	✅
Email Integration	✅ Native	⚠️ Add-on
Marketing Automation	✅ Module	❌ External
Customer Portal	✅	⚠️ Add-on
Mobile App	✅	✅

CRM Verdict: Odoo is clearly stronger here - modern CRM with marketing automation included. SAP B1 often needs external CRM systems.

Purchasing & Procurement

Function	Odoo	SAP B1
Purchase Orders	✅	✅
Supplier Evaluation	✅	✅
Blanket Orders	✅	✅
Approval Workflows	✅	✅
RFQ	✅	⚠️ Limited
Supplier Portal	✅	❌
Dropshipping	✅	⚠️ Add-on

Purchasing Verdict: Both solid, Odoo with more modern features like supplier portal out-of-the-box.

Warehouse & Logistics

Function	Odoo	SAP B1
Inventory Management	✅	✅
Multi-Warehouse	✅	✅
Batch/Serial Numbers	✅	✅
Barcode Scanning	✅	✅
Pick-Pack-Ship	✅	⚠️ Limited
Bin Location Management	✅	⚠️ Add-on
Shipping Integration	✅ Apps	✅ Apps

Warehouse Verdict: Odoo has more advanced WMS features out-of-the-box. SAP B1 often needs add-ons.

Manufacturing & Production

Function	Odoo	SAP B1
Bills of Materials (BOM)	✅	✅
Manufacturing Orders	✅	✅
Work Planning	✅	✅
MRP (Material Planning)	✅	✅
Quality Management	✅ Module	⚠️ Add-on
IoT Integration	✅	⚠️ Limited
Shopfloor Control	✅	⚠️ Add-on

Manufacturing Verdict: Both good for discrete manufacturing. Odoo more modern with IoT and shopfloor.

E-Commerce & Website

Function	Odoo	SAP B1
Integrated Web Shop	✅ Native	❌
Website Builder	✅ Native	❌
POS (Point of Sale)	✅	⚠️ Add-on
Marketplace Integration	✅ Apps	⚠️ Add-on
B2B Portal	✅	⚠️ Add-on

E-Commerce Verdict: Clear advantage Odoo - everything from one source. SAP B1 needs external systems.

---

Cost Comparison: 5-Year TCO

Scenario: 20 Users, Mid-Size Trading Company

Odoo Enterprise (Cloud)

Cost Type	Year 1	Years 2-5	5-Year TCO
Licenses	€14,400	€14,400/year	€72,000
Implementation	€30,000	-	€30,000
Customizations	€15,000	€5,000/year	€35,000
Training	€5,000	€1,000/year	€9,000
Support	incl.	incl.	-
Total	€64,400	€20,400/year	€146,000

Odoo Community (Self-Hosted)

Cost Type	Year 1	Years 2-5	5-Year TCO
Licenses	€0	€0	€0
Hosting	€3,600	€3,600/year	€18,000
Implementation	€35,000	-	€35,000
Customizations	€20,000	€8,000/year	€52,000
Training	€5,000	€1,000/year	€9,000
Support Contract	€6,000	€6,000/year	€30,000
Total	€69,600	€18,600/year	€144,000

SAP Business One (On-Premise)

Cost Type	Year 1	Years 2-5	5-Year TCO
Licenses (Purchase)	€60,000	-	€60,000
Maintenance (18%)	€10,800	€10,800/year	€54,000
Implementation	€80,000	-	€80,000
Customizations	€30,000	€10,000/year	€70,000
Hardware/Hosting	€8,000	€5,000/year	€28,000
Training	€8,000	€2,000/year	€16,000
Total	€196,800	€27,800/year	€308,000

SAP Business One (Cloud)

Cost Type	Year 1	Years 2-5	5-Year TCO
Licenses (Subscription)	€36,000	€36,000/year	€180,000
Implementation	€60,000	-	€60,000
Customizations	€25,000	€8,000/year	€57,000
Training	€8,000	€2,000/year	€16,000
Total	€129,000	€46,000/year	€313,000

Cost Summary

System	5-Year TCO	Cost/User/Month
Odoo Community	€144,000	€120
Odoo Enterprise	€146,000	€122
SAP B1 On-Premise	€308,000	€257
SAP B1 Cloud	€313,000	€261

Cost Verdict: Odoo is approximately 50% cheaper than SAP Business One with comparable functionality.

---

Implementation & Rollout

Typical Project Timeline

Odoo

Phase	Duration	Activities
Analysis	2-3 weeks	Requirements, processes, gaps
Concept	2-3 weeks	Solution, migration, customizations
Configuration	4-8 weeks	Setup, customizations, integrations
Migration	2-4 weeks	Data transfer, validation
Test & Training	2-4 weeks	UAT, training, go-live prep
Go-Live	1-2 weeks	Production start, hypercare
Total	3-6 months

SAP Business One

Phase	Duration	Activities
Blueprinting	4-6 weeks	Requirements, fit-gap, concept
Realization	8-16 weeks	Configuration, development
Migration	4-6 weeks	Data transfer, mapping
Test	4-6 weeks	Integration, acceptance tests
Go-Live Prep	2-4 weeks	Training, cutover plan
Go-Live	2-4 weeks	Production start, support
Total	6-12 months

Implementation Risks

Risk	Odoo	SAP B1
Complexity	Low-Medium	Medium-High
Partner Availability	Medium	High
Standardization	Low (flexible)	High (strict)
Upgrade Path	Annual releases	LTS versions
Know-how Market	Growing	Established

---

Flexibility & Customizability

Customization Options

Type of Customization	Odoo	SAP B1
Add Fields	✅ Studio (GUI)	⚠️ UDF (limited)
Customize Forms	✅ Easy	⚠️ Complex
Create Workflows	✅ GUI-based	⚠️ SDK required
Create Reports	✅ Report Builder	✅ Crystal Reports
APIs	✅ REST/XML-RPC	✅ Service Layer
Custom Code	✅ Python	⚠️ SDK (C#/VB)

Extensibility

Odoo:

• 40,000+ apps in App Store
• Many free (Community)
• Easy custom development
• Modules can be combined

SAP Business One:

• SAP-certified add-ons
• Mostly paid
• More complex development
• Strict certification

Upgrade Capability

Odoo:

• Annual major releases
• Migration required
• Customizations need checking
• Community support available

SAP Business One:

• Less frequent major updates
• Patches easier
• Add-ons must be compatible
• SAP support available

---

Who Should Use Which System?

Odoo is ideal for:

✅ Fast-growing companies

• Start modular, expand as needed
• No high initial investments

✅ E-Commerce & Omnichannel

• Web shop, POS, marketplace integrated
• Everything from one source

✅ Agile companies

• Quick adjustments possible
• Short implementation cycles

✅ Budget-conscious SMEs

• 50% lower TCO
• Community version free

✅ Companies with specific requirements

• High customizability
• Custom modules possible

SAP Business One is ideal for:

✅ Companies with SAP parent company

• Integration into SAP landscape
• Known processes

✅ Highly regulated industries

• Certified solution
• Audit trail

✅ Conservative IT strategy

• Established provider
• Long-term predictability

✅ Complex financial structures

• Multi-company
• Consolidation

✅ Companies with SAP know-how

• Leverage internal knowledge
• Unified system landscape

Decision Matrix

Priority	→ Odoo	→ SAP B1
Low costs	✅
Fast introduction	✅
E-commerce integrated	✅
Flexibility	✅
SAP integration		✅
Established provider		✅
Certified add-ons		✅
Corporate structures		✅

---

Our Recommendation

Choose Odoo if:

1. Budget matters - 50% lower TCO
2. You need e-commerce - Everything integrated
3. You want to stay flexible - Easy customizations
4. You want to start fast - 3-6 months instead of 6-12
5. You want to work modern - Better UX, mobile-first

Choose SAP Business One if:

1. You have SAP in the group - Integration important
2. You're regulated - Audit, compliance critical
3. You plan conservatively - Rather safe than innovative
4. You need special add-ons - SAP ecosystem
5. You have complex finances - Multi-company, consolidation

The Honest Take

For most mid-size businesses, Odoo is the better choice today:

• More modern - Better UX, faster innovation
• Cheaper - Half the cost with full functionality
• More flexible - Customizations in days not months
• More integrated - CRM, e-commerce, website all-in-one

SAP Business One remains relevant for companies already living in the SAP world or with very conservative requirements.

---

Next Steps

Facing an ERP decision?

At Balane Tech, we specialize in Odoo implementations for mid-size businesses. We'd be happy to show you in a demo how Odoo could look for your company - no obligation and no sales pressure.

Schedule a free Odoo demo