Odoo and Dynamics 365: Comparison of Functionality, Customization, and Integration

When implementing an ERP system, it's essential for businesses to assess options like Odoo and Dynamics 365 to ensure the solution aligns with their unique needs, budget, and growth objectives. Each system has distinct advantages—Odoo offers flexibility and cost savings through open-source customization, while Dynamics 365 provides robust scalability and seamless integration with the Microsoft ecosystem. Evaluating both allows businesses to consider factors like initial and ongoing costs, integration capabilities, and support options, empowering them to choose an ERP system that best supports their operational goals and maximizes long-term value.

Odoo is a modular, open-source platform offering over 30 applications to manage various business areas, including CRM, ERP, eCommerce, accounting, manufacturing, and more. Its open architecture provides flexibility for customizing and expanding functionality to meet specific company needs.

Dynamics 365 is a suite of intelligent business applications combining CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) capabilities. It includes modules for sales, marketing, customer service, finance, supply chain management, and other areas. Dynamics 365 integrates seamlessly with Microsoft products such as Office 365, Power BI, and Azure, creating a unified business ecosystem.

Comparison of Key Aspects:

  • Licensing and Cost:
    • Dynamics 365: A commercial software with a subscription model; pricing depends on the modules and number of users.
    • Odoo: Offers a free open-source Community Edition and a paid Enterprise Edition with additional features and official support.
  • Integration:
    • Dynamics 365: Deeply integrates with other Microsoft products, ideal for companies already within the Microsoft ecosystem.
    • Odoo: Supports integration with various third-party applications and services due to its open architecture.
  • Customization and Scalability:
    • Dynamics 365: Provides extensive customization and scalability but may require significant resources for implementation and support.
    • Odoo: With its modular structure and open-source code, it is easily customizable and scalable to specific business needs.
  • Support and Community:
    • Dynamics 365: Offers official support from Microsoft and partners, with a large community of users and developers.
    • Odoo: Has an active community of developers and users, especially for the open-source version; the paid version includes official support from Odoo S.A.

Choosing between Dynamics 365 and Odoo depends on your business needs, budget, licensing preferences, and integration requirements with existing systems. A thorough analysis of your company’s needs is recommended, and consulting experts can help ensure an optimal decision.


Comparison of Functionalities Across  Modules


Let's go deeper

Both ERPs offer a broad array of features, but to uncover their true distinctions, it's essential to look closely at the specific tools each one provides. We’ll conduct a detailed comparison of the modules available on each platform to determine which delivers more comprehensive support for effective business management. This analysis will focus on functionalities related to Inventory Management, Supply Chain, Production, Maintenance, QMS, and PLM. By assessing each platform in these key areas, we can make a well-informed decision on which ERP aligns best with particular operational objectives and workflow needs.

Inventory Management 

The Inventory Management tools is designed to streamline and automate the processes related to managing stock, warehousing, and inventory. It offers tools for efficiently tracking and controlling stock levels, managing warehouse operations, and optimizing the flow of goods to meet demand accurately.

Both Odoo and Dynamics 365  offer robust tools for inventory management. However, there are some differences in the features each platform provides.


For instance, Odoo includes tools like Multi-Warehouse Management, which allows businesses to efficiently oversee multiple warehouse locations with real-time stock transfers; Non-Stocked Inventory, which supports the management of items not physically stocked but available for sale (ideal for special orders or drop-shipping); and Cross-Docking, which enables direct transfer of incoming goods to outgoing shipments, minimizing storage time and enhancing logistical efficiency.


Meanwhile, Dynamics offers a feature like Automatic ASN (Advanced Shipping Notice), designed to facilitate pre-shipment notifications to receiving parties, ensuring accurate tracking of inbound shipments, improving visibility, and optimizing receiving processes.

Inventory Management  

Odoo vs Dynamics 365  

General Scope

Odoo 

Dynamics 365

Multi-Warehouse

Storage Locations  

Bin Replenishment

Mobile Device Support  

Multi-Company

Multi-Currency

Multi-Language

Automatic ASN (Advanced Shipping Notice)


Package Management / Cartoning

Freight Carrier Integration

Manage Consignee Stocks

EDI (Electronic Data Interchange)

Products



Non-Stocked Inventory

Multiple Variants

Multiple Units of Measure

Inter-Classe UoM Conversion

Variant Matrix

Traceability



Lots / Serial Numbers

Up / Down Traceability

360° Traceability

Expiration Dates

Cycle Counting

Reporting



Inventory Forecasts

Inventory Valuations

ABC Analysis

Barcode Support



QR Code Support

RFID Support

Lots / Serial Numbers Support

Receptions

Completion

Internal Moves

Delivery Orders

Inventory Adjustments

Routing



FIFO / LIFO

Customizable Routes

Putaway Strategies

Wave Picking

Batch Picking

Zone Picking

Cluster Picking

Cross-Docking

Putaway Locations

Source: https://www.odoo.com/uk_UA/page/odoo-vs-dynamics-ax

Supply chain

The Supply Chain Management tools are designed to optimize and streamline the end-to-end processes involved in managing a company’s supply chain. They provide tools for coordinating production, inventory, warehousing, transportation, and logistics to ensure efficient movement of goods and materials. Both Odoo and  Dynamics 365 offer extensive functionality for these purposes. However, by choosing Odoo as the ERP system for your business, you gain two additional tools not available in Dynamics 365:

  • Inbound Quality Control for ensuring the quality of incoming goods through inspections and compliance checks, which helps to prevent defective materials from entering your inventory.
  • Contracts / Purchase Agreements for managing long-term supplier relationships by setting up recurring orders, pricing agreements, and terms, ensuring consistent supply at favorable terms.

These tools enhance control over the quality and consistency of inbound materials and streamline vendor relations, making Odoo a strong choice for supply chain-intensive businesses.


Supply chain

Odoo vs Dynamics 365 

Features

Odoo

Dynamics 365

Vendor Data Management

Vendor Pricelist Management

Inbound Quality Control

Dropshipping

Purchases



Purchase Requests

Purchase Orders

Purchase Approval Workflow

Request for Quotations

Contracts / Purchase Agreements

Automated Procurements



Minimum Stock Rules

Make-to-Order

Master Production Schedule

Source: https://www.odoo.com/uk_UA/page/odoo-vs-dynamics-ax

Manufacturing

The set of manufacturing tools is designed to manage and optimize the entire production process, helping companies streamline workflows, boost efficiency, and ensure product quality. This functionality is particularly valuable for businesses with complex production workflows, offering robust tools for planning, tracking, and controlling each stage of manufacturing.The set of manufacturing tools is designed to manage and optimize the entire production process, helping companies streamline workflows, boost efficiency, and ensure product quality. This functionality is particularly valuable for businesses with complex production workflows, offering robust tools for planning, tracking, and controlling each stage of manufacturing.

Odoo offers 25 more manufacturing tools than Dynamics 365.  These include four extra planning tools—such as Gantt Chart Scheduling, Kanban Planning, Delivery Date Calculation, and Production Order Splitting/Merging—as well as several operational management tools, including Disassembly Orders, Rework/Repair, Disposal Strategies, and the ability to edit individual Production BoMs. Additionally, Odoo provides a range of tools for Costing, Shop Floor Control, Human Resources, Reporting, and Forecasting that are not available in Dynamics 365, giving companies a more extensive toolkit for end-to-end manufacturing management.

Manufacturing

Odoo vs Dynamics 365 

Master Data

Odoo

Dynamics 365

Multi-Level BoM

By-Products / Co-Products

Routings

Subassemblies

One BoM for Multiples Product Variants

BoM Versioning

Multiple BoM / Routing

Planning



Demand Forecasting

MRP Scheduler

Gantt Chart Scheduling

Kanban Planning

Production Calendar

Infinite Capacity Scheduling

Finite Capacity Scheduling

Multiple Scheduling Plans


Delivery Date Calculation

Production Order Splitting / Merging

Operations



Manufacturing / Production Orders

Job Tracking

Work Orders / Operations

Automated Time Tracking

Disassembly Orders

Subcontracting

Rework / Repair

Scrap

Disposal Strategies

Kits

Edit Individual Production BoMs

Costing



Perpetual Inventory Valuation

Periodic Inventory Valuation

Standard Price

FIFO / LIFO

Landed Costs

Actual Production Labor

Production Order Costing

Shop Floor Control



Shop Floor Terminals

Production Activities

Non-Production Activities

Time Tracking

Messages on Work Orders

Barcode Support

Equipment / Maching Management

Work Instructions on Work Orders

Maintenance Requests from Shop Floor Terminal

Human Resources



Schedule Management

Touchscreen Attendance


Tables

Breaks


Overtime

Vacation / Injury

Reporting and Forecasting



Overall Equipment Efficiency

Work Time

Demand Forecast

Maintenance KPIs

Production Costs Analysis

Analytic Accounting

CSV Export

Dynamic Pivot Tables

Dashboards

Save Custom Reports

Source: https://www.odoo.com/uk_UA/page/odoo-vs-dynamics-ax

Maintenance

The Maintenance instruments are used to manage and optimize equipment and asset maintenance, ensuring that machines and facilities are operating efficiently, minimizing downtime, and extending the life of assets.

Dynamics 365 offers a very limited set of tools for these purposes, with only three main features: Schedule Preventive Maintenance, Inventory Management, and Purchasing Integration. In contrast, by choosing Odoo, you gain an additional 11 tools on top of these, providing a more comprehensive solution for maintenance management.

Maintenance

Odoo vs Dynamics 365 

Scheduling and Request Handling

Odoo

Dynamics 365

Schedule Preventive Maintenance

Maintenance Kanban

Maintenance Calendar

Shop Floor Integration

Multiple Teams / Sites

Asset Management

Subcontract Repair

Job Tracking

Parts Management



Inventory Management

Purchasing Integration

Rotating Asset Location

Equipment Serial Numbers

Equipment Maintenance History

Dealer Portal

Source: https://www.odoo.com/uk_UA/page/odoo-vs-dynamics-ax

QMS

The Quality Management System (QMS) functionality is designed to ensure that products and processes meet defined quality standards, helping organizations uphold high quality, comply with regulatory requirements, and minimize defects. 

Odoo ERP offers users over 16 practical tools to support these goals, while, unfortunately, Dynamics 365 lacks this level of QMS functionality.


Quality Management System 

Odoo vs Dynamics 365 

Quality Control

Odoo

Dynamics 365

At Reception  


In-Process

Before Delivery

Inventory Quarantine

Quality Checks



Quality Control Plan

Pass/Fail Checks

Measurement Checks

Quality Alerts / Nonconformance Documents

Print Nonconformance Documents

Corrective Actions

ISO9001 Tools



Documentation Management

Customer Satisfaction Surveys

Customers Complaints Management

Traceability of Operations

Resources Management

Reports



Nonconformance Costs

Source: https://www.odoo.com/uk_UA/page/odoo-vs-dynamics-ax

Product Lifecycle Management

The Product Lifecycle Management tools are designed to help organizations manage the entire lifecycle of a product, from initial concept through design, production, and service to end-of-life. They ensure that product-related data is accessible, up-to-date, and managed effectively across departments. Both Odoo and Dynamics 365 offer excellent toolsets for these purposes, with some distinctions.


By choosing Odoo, you gain tools like Notification Mechanism and Project Email Gateway, which are designed to streamline communication, provide automated notifications on project updates, and ensure stakeholders stay informed throughout the product lifecycle.


Meanwhile, by selecting Dynamics 365, you gain access to tools like ECO Costing and Autodesk Integration. ECO Costing supports cost analysis associated with engineering changes, helping to manage the financial impact of design adjustments, while Autodesk Integration provides seamless access to CAD data, facilitating product design and engineering processes within the PLM system.


Product Lifecycle Management 

Odoo vs Dynamics 365 

Features

Odoo

Dynamics 365

Engineering Change Orders (ECOs)

BoM Versioning Management    


Routing Version Management

MRP Integration

Centralized BoM Management

ECO Management



Approval Workflows

BoM Version Difference Viewer

Bulk BoM Updates

Notification Mechanism

Project eMail Gateway

ECO Costing

Third-Party CAD Integrations



AutoCAD

SolidWorks

Autodesk

Source: https://www.odoo.com/uk_UA/page/odoo-vs-dynamics-ax

Usability

Both platforms offer comprehensive mobile applications compatible with Android and iOS devices, ensuring users can manage their accounting tasks on the go.  

User Interface 

Odoo vs Dynamics 365 


Odoo

Dynamics 365

Full Web Interface

Mobile App


App Store / Add-ons

Source: https://www.odoo.com/uk_UA/page/odoo-vs-zoho

Subjective Ratings

Subjective ratings help users gain an overall impression of the platform, based on personal experience and individual needs. They include aspects that can vary for each user, such as interface usability, user satisfaction, customization flexibility, and customer support.


Odoo

Microsoft Dynamics 365

Navigation and Search 5/5​
5/5

Data Entry  

5/5​

5/5​

Mobile App  

4/5​

5/5​

Reports Flexibility

4.5/5

5/5

Pricing and Conditions

The table compares the pricing and features of Odoo and Dynamics 365.  By comparing these features, companies can make a more informed decision based on their unique operational needs, budget constraints, and long-term goals.

V/S
Odoo
Dynamics 365
Pricing

 Free for the base version.

 $95 per month per user.

Number 
of Users

 Unlimited users.

 Unlimited users.

Contract
Duration
 

 Offers both monthly and yearly options.

 Perpetual license.

Free Trial

 Provides a free trial to explore features before purchasing.

 Does not offer a free trial.

Open-Source

 Open-source, allowing for extensive customization and integration options, enabling companies to tailor the system without dependency on the provider.

 Proprietary software, limiting customization options to those provided by Microsoft.

Hosting 

 Available as both cloud and on-premise, giving companies control over their data hosting.

Also offers cloud and on-premise hosting.

Pricing Details

When comparing the cost of Odoo and Dynamics 365, several factors come into play, including the base pricing structure, potential additional costs, and the long-term financial commitment for each platform.

1. Base Pricing

  • Odoo: The base version of Odoo is free, making it an attractive option for companies that want to start with minimal costs. However, Odoo also offers paid modules and services. If a business requires additional functionality, it may need to pay for extra modules, which can increase the cost. Hosting on Odoo’s cloud is also an added expense for companies that prefer this option.
  • Dynamics 365:  Dynamics 365 has a higher entry cost, with a subscription price of $95 per user per month for many of its business solutions (although pricing can vary based on the specific Dynamics 365 modules). This pricing structure means companies pay a recurring cost based on the number of users, which can add up significantly as the number of users increases.

2. Additional Costs

  • Odoo: While the base version is free, Odoo may incur costs for certain premium modules, customization, and integration. If a business needs advanced features or extensive customization, they may need to invest in developer support or purchase additional functionality, leading to variable costs based on the company’s needs. Additionally, choosing on-premise hosting may require the company to handle hardware, maintenance, and support costs internally.
  • Dynamics 365: As a proprietary software, customization options in Dynamics 365 are limited to Microsoft’s provided tools or certified third-party solutions, which may require additional fees. Furthermore, Microsoft offers various Dynamics 365 modules (such as Sales, Customer Service, and Finance), and each module has its pricing, so companies could face additional costs depending on the modules they select.

3. Long-term Cost Implications

  • Odoo: Due to its open-source nature, Odoo provides a more flexible cost structure. Businesses can start with the free version, add specific paid modules as they grow, and even handle customizations in-house if they have the technical expertise. Over time, Odoo can be a cost-effective solution for companies that prioritize flexibility and need to scale up without substantial costs.
  • Dynamics 365: Dynamics 365 has a fixed, recurring cost that increases with the number of users and modules. For companies with many employees, this subscription model could result in significant long-term expenses. However, for organizations that prefer a comprehensive, managed solution with ongoing updates and support from Microsoft, the steady monthly cost may be justifiable.

Summary

  • Odoo offers a cost-effective entry point with its free base version and a flexible pay-as-you-grow approach for added modules, making it suitable for budget-conscious businesses or those that want the flexibility to scale up gradually.
  • Dynamics 365 has a higher initial cost due to its monthly per-user subscription, which can increase with additional users and modules, making it a potentially costly solution for larger teams or companies that need multiple modules.

In short, Odoo is more affordable for companies looking to start small and scale gradually with minimal recurring fees, whereas Dynamics 365 requires a more substantial investment but provides a full-featured, managed solution with predictable monthly costs.

Conclusions

Odoo and Dynamics 365 are both robust ERP systems, each with unique strengths tailored to different business needs. Odoo offers flexibility through its open-source framework, free base version, and modular structure, making it an attractive choice for budget-conscious businesses that prioritize customization and scalability at a lower entry cost. Its extensive feature set, including additional tools for manufacturing, supply chain, and maintenance, makes it especially beneficial for companies seeking a highly adaptable, customizable ERP solution.

Dynamics 365, on the other hand, provides a proprietary, integrated suite of applications that seamlessly aligns with the Microsoft ecosystem, ideal for organizations already using Microsoft products. It offers deep integration, structured support, and robust functionality across areas like CRM, financial management, and production. However, its subscription model and higher upfront costs may require a larger investment, making it more suitable for enterprises looking for a comprehensive, fully managed solution with predictable expenses.

Ultimately, the choice between Odoo and Dynamics365 depends on a company's budget, customization needs, and long-term goals. Odoo appeals to businesses seeking cost-effective flexibility, while Dynamics 365 serves as a powerful, integrated solution for companies looking for scalability within the Microsoft infrastructure.

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