First steps in Odoo / ERP
An ERP (Enterprise Resource Planning) system integrates key business processes into a single platform, helping to automate work and increase efficiency. Odoo is a modern ERP system that has rapidly gained popularity and is now one of the most widely used business management solutions in the world. Odoo is positioned as “the world’s easiest all-in-one management software” and includes hundreds of modules: CRM, e-Commerce, Accounting, Warehouse, POS, Projects, Production, etc. In this guide article, we will look at the first steps of working with Odoo and provide a checklist for implementation - this will be useful both for entrepreneurs planning to implement Odoo on their own, and for those who want to understand the basic principles of ERP and system configuration.
What is Odoo and why is ERP important for business?
Odoo is a modular, open-source ERP platform that covers all the basic needs of a company. Instead of having separate applications for different departments, ERP integrates sales, customer management, inventory, accounting, and other functions into a single system. For example, in Odoo, data from the Sales module is automatically reflected in the Warehouse and Accounting modules, which eliminates double data entry and reduces errors. The advantages of ERP for entrepreneurs: a single database provides a holistic view of the business, process automation saves time on routine operations, and operational analytics helps make informed decisions based on up-to-date data. Odoo is flexible and scalable – you can start with a few basic modules and gradually add new ones as your business grows. Thanks to its open source code and active community, Odoo is also easily adaptable to specific needs and local requirements.
Odoo implementation planning: preparing for launch
Assess business needs
Before you start implementing ERP, identify the main goals and problems you want to solve with Odoo. Analyze your current business processes: where are the bottlenecks, which tasks consume the most time or resources, which systems you already use. Clearly formulate expectations - for example, "organize the customer base and track sales", "automate invoicing and payments", "control stock levels", etc. By defining priorities, it will be easier for you to select the appropriate Odoo modules and plan the implementation sequence.
Create a basic implementation plan
It is recommended to draw up a brief project plan: who will be responsible for the implementation (you personally, an internal IT specialist or a third-party partner), what stages need to be completed (system installation, initial settings, data transfer, staff training), as well as approximate deadlines. Even if you are implementing Odoo yourself, it is useful to appoint a “project owner” – a person responsible for coordinating all these steps. Think about what data will need to be transferred to Odoo from previous systems (customer contacts, product range, balances, etc.) and prepare it in advance.
Choosing modules to start
Based on the identified needs, decide which modules to start implementing. For most companies, the starting set will be the CRM, Sales, Warehouse, Accounting modules, which are discussed in detail below. If you have an online store - add Website/eCommerce; manufacturing - the MRP module; services - Projects or Timesheets. Odoo allows you to freely add modules, so at the initial stage it is better to launch only the most necessary ones, and connect the others after a successful start. A clear focus will help you get results faster and avoid overloading the team with new tools.
Cloud or on-premises Odoo implementation
Odoo can be deployed in two main ways: in the cloud (Software-as-a-Service on Odoo or partner servers) or locally (on your own server in the office or on rented hosting). Let's consider the features of both approaches:
Odoo in the cloud (SaaS)
The cloud version of Odoo (for example, the Odoo Online platform) allows you to get started as quickly as possible. You simply register on the official website and receive a ready-to-use Odoo cloud database.
Advantages: no need to configure the server or install software - all technical aspects (infrastructure, updates, backups) are taken care of by Odoo. You will always have the latest version of the system, as updates are installed automatically, and you can count on a high level of service availability (SLA ~99.9% uptime). Cloud Odoo also includes technical support and bug fixes from the developer.
Possible limitations: in the SaaS version you are limited to standard "certified" modules from Odoo - installing third-party applications or your own code modifications is not allowed (this is done to ensure the stability of the cloud service). If your needs fall within the scope of standard functionality, the cloud version will be the easiest and most reliable choice.
Local deployment of Odoo (On-Premise)
Local deployment involves installing Odoo on your own server or hosting of your choice. This can be the Odoo Community version (free and open source) or Odoo Enterprise with a commercial license – both can be deployed independently.
Advantages: full control over the system and data. You are not dependent on the limitations of the cloud service and can install any modules or develop your own add-ons for specific requirements. A local installation is especially appropriate if you need deep customization, integration with third-party systems at the database level, or if your company has a policy of storing data only in its infrastructure.
Challenges: You are responsible for maintaining the system. You need server administration skills (Linux, PostgreSQL, etc.) and an understanding of Odoo's architecture. The Odoo developer warns that this option is only recommended for companies with sufficient technical experience, as there are no guarantees from Odoo SA regarding the performance or security of your server when deployed locally. You need to set up backups, update versions, and monitor security yourself. If your own resources are not sufficient, you can engage an Odoo partner to help with the installation and maintenance of the local system. Thus, local implementation provides more flexibility, but will require more effort in IT administration.
(Note: There is also an intermediate cloud option, Odoo.sh - this is Odoo's PaaS platform, which combines the advantages of the cloud (automation of DevOps processes) with the ability to install custom modules. For your first acquaintance with Odoo, you can start with it if you plan your own development, but most often beginners just need to choose between full SaaS or on-premise.)
Initial Odoo setup: step by step
Let's move on to practical steps. Below are the main steps for deploying and basic configuring Odoo for a new company:
- Installing and starting the system. If you chose the cloud option, register an account on odoo.com and create a new database via the web interface (Odoo will offer to do this automatically during registration). For local installation – download the Odoo installation package from the official website or deploy a Docker container, install dependencies (Python, PostgreSQL, etc.) and start the Odoo server. After starting, go to your server's address in your browser (typically http://localhost:8069 for local launch) and you will see the wizard for creating a new database.
- Creating a new database. On the first launch, Odoo will ask you to specify a database name, administrator login/password, and select a country (for local settings). Enter the required data - the system will create an empty database for your company. In the future, use the specified administrator credentials for access.
- Selecting and installing modules. After logging into your new system, you will be taken to the Odoo backend. At this point, it is almost empty, as no application modules have been installed yet. Go to the Apps menu to see all available modules. Install the basic modules you need to get started – usually CRM, Sales, Inventory, Accounting. Simply click “Install” next to the desired add-on and Odoo will automatically download and activate it in your database. (For the cloud version, installation is instant; for the local version, an internet connection may be required to download modules or add them to the server first).
- Initial company settings. After installing the key modules, it is worth filling in information about your company. Go to Settings - there in the Company section you can upload a logo, enter the legal name, address, contact details, currency and time zone. This data will be inserted into printed documents (commercial proposals, invoices, acts) and will affect localization (for example, choosing a chart of accounts by country for accounting). At the same step, you can set the main system parameters: interface language (Odoo supports dozens of different languages), date and number format, base accounting currency, units of measurement, etc.
- Creating users and access rights. By default, you work under an administrator account, but for real work, add other users – sales manager, accountant, storekeeper, etc. In the Settings → Users module, create users and assign them the appropriate access roles (groups). For example, a salesperson has enough access to CRM and Sales, while an accountant has only Accounting and advanced financial rights. Odoo has predefined access groups for each module; simply specify the required role and the system will automatically limit data visibility to that profile.
- Basic module configuration. It is advisable to review and minimally customize each installed Odoo application. For example, in CRM, you should define the stages of deals in the sales funnel (Lead, Qualified, Won/Lost, etc.), configure lead sources, and disable unnecessary fields if necessary. In the Sales module – check the commercial offer template, default tax rates, payment terms; in the Warehouse – create warehouses/locations, configure operation types (receipt of goods, shipment, movement); in the Accounting module – set the chart of accounts (Odoo will suggest a typical one for your country when creating the database), fill in taxes and analytical articles. At this stage, you should go through each module in the Settings menu of the corresponding application and review the available options. For beginners, it is useful to use the official tutorials: on the Odoo website and in Odoo eLearning there are free video courses on the basic modules (CRM, Sales, Inventory, Accounting, etc.), which show how to configure them and use them in practice.
Overview of Odoo's basic modules
At the beginning of your implementation, it is recommended to focus on a few core modules that cover key business functions. Below is a brief overview of these modules and how they will help your business:
CRM (Customer Relationship Management)
The CRM module helps you manage customer relationships and sales opportunities. Here you maintain a database of leads and potential deals, monitor the status of each opportunity (moving it through the stages of the sales funnel), and plan next actions with the client (calls, meetings). You can set up automatic reminders for follow-up, define sales stages (e.g. New Lead → In Negotiations → Deal Closed), and track the funnel through a convenient Kanban board. CRM analytical reports will allow you to assess the efficiency of the department: lead conversion, monthly sales forecast, etc. Thus, the CRM module is the starting point for working with customers and is often where Odoo implementation begins.
Sales
The Sales module is directly connected to CRM and covers the process from the commercial offer to the order and invoice. When the lead is assigned the status “successful”, Sales can quickly create a commercial offer based on the customer’s request. Odoo allows you to send the offer to the customer by email directly from the system and even allow it to be signed online. After confirming the offer, it is automatically converted into a sales order, and when the goods are shipped, a shipping invoice is generated. The Sales module maintains a catalog of goods and services, and sets up pricing rules, discounts, and taxes.You can also invoice customers here (or the Accounting module does this - depending on the configuration). So, Sales simplifies the management of the full sales cycle: from the first inquiry to payment, ensuring transparency and control at every stage.
Inventory
The warehouse module is responsible for managing goods, inventory, and logistics. It integrates with sales and purchasing to provide up-to-date information on the number of goods in warehouses. In Odoo, warehouse accounting is implemented according to the principles of double entry: each movement of goods (receipt from a supplier, internal movement, shipment to a customer) is documented, and balances are calculated automatically. In the Warehouse module, you can create one or more warehouses, divide them into locations (zones, shelves), and define delivery routes (for example, product X, when ordered, automatically triggers a purchase from the supplier). When processing an order from the Sales module, the system will create a packing for shipment, and the storekeeper will see a shipment task. After confirming the shipment, the remaining goods in the warehouse will decrease. Similarly, the module allows you to conduct inventories, track batches and serial numbers, and generate turnover reports. For an entrepreneur, the Warehouse module provides inventory control: you always know how much product is in stock, which items need replenishment, and you can optimize inventory so that money doesn't freeze in surplus.
Accounting
The Accounting module integrates your finances into the ERP system. It allows you to automatically generate invoices based on sales orders, register customer payments, and keep records of expenses and purchases. When you issue an invoice via the Sales module or through the Invoicing module, Odoo reflects this transaction in the accounting system by posting the corresponding journal entries.
Localizations are available for many countries—standard chart of accounts, tax rates, and reports (balance sheet, P&L, VAT declarations, etc.) according to national standards.
First, make sure your company is properly configured (legal name, tax ID, currency, report language). Then, set up bank accounts, cash registers, and opening balances (if you’re migrating to Odoo in the middle of a fiscal year).
The Accounting module supports multi-currency, accounts receivable and payable management, payroll processing (via a separate Payroll module), fixed assets, and many other features.
For business owners, the value of integrated accounting lies in having up-to-date financial data that’s connected to operations: no gaps between sales, inventory, and money. At any time, you can generate a profit and loss report, view cash flow, or see a list of overdue customer payments—all based on daily operations without the need for manual data consolidation.
(Of course, Odoo also includes other modules—Purchasing, Manufacturing, Marketing, HR, etc.—which can be connected in later implementation stages if needed. At the initial stage, it's important to master the basic modules mentioned above, as they form the core accounting system for most companies.)
Odoo Implementation Checklist
To wrap up, here’s a brief checklist of essential steps to ensure you don’t miss anything when launching Odoo:
✅ Define implementation goals. Clearly articulate what business problems the ERP should solve (issues you aim to fix and KPIs you plan to improve).
✅ Gather requirements and select modules. List your key business processes and decide which Odoo modules are needed at the start (CRM, Sales, Inventory, Accounting, etc.).
✅ Choose a deployment format. Consider whether a cloud version (quick start, minimal tech overhead) or your own server (more control and customization options) is best for your case. Consult official Odoo partners if needed.
✅ Deploy the system and create a database. Register on Odoo Online or install Odoo on your server, create a company database, and store administrator credentials.
✅ Install basic modules. Use the Apps menu to install selected modules (e.g., CRM, Sales, Inventory, Accounting). Ensure required features are activated.
✅ Configure main settings. Fill in company details (info, logo), set local parameters (language, currency, taxes), add users, and assign access rights.
✅ Prepare your data. Structure and import required records in advance: product/service lists, customer and vendor contacts. This can be done manually or using built-in CSV import tools.
✅ Test business processes in the system. Run test examples of key workflows: lead creation and conversion, sale and invoice generation, product delivery from the warehouse, customer payment registration. Make sure everything works as expected and that users understand how to operate in the new system.
✅ Train your team. Conduct training sessions for employees who will use Odoo. Demonstrate core workflows, provide short guides or links to official Odoo video tutorials. Encourage questions and discussion so everyone feels confident with the new tool.
✅ Start working and track results. Launch the system in live mode—with real data and operations. In the first weeks, monitor key metrics: is manual work reduced, are sales processed faster, are inventory levels accurate, etc. Gather user feedback and make adjustments—perhaps a document or report needs tweaking, or additional automation is required. Regularly review your original implementation goals—are they being achieved?
Conclusion and Next Steps
Implementing an ERP system like Odoo is a major step for a business that requires careful planning—but the results are worth the effort. Once the initial configuration is done and the core modules are launched, you’ll gain transparent processes and a single source of truth for your business data.
Odoo is a flexible and scalable platform that grows with your company: you can always add new modules or features as needed (e.g., integrate an online store, CRM marketing, or customer support system).
Don’t forget to take advantage of the official Odoo documentation and video tutorials—they're free and will help you better understand the system’s capabilities.
If a task exceeds your internal resources, reach out to certified Odoo partners—they can consult or handle complex implementation steps.
We hope this guide and checklist will help you take your first steps with Odoo successfully and get the most out of this ERP system to grow your business!