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What is the Odoo ERP System?
Odoo ERP System is a set of different modules, where each module will have its own characteristics and functions, but all the modules will integrate each other and share a common database. Each module represents each business function such as Sales, Purchase, Inventory, Accounts, Manufacturing, Project Management, CRM, HR, Payroll, etc. An ERP system means all these modules will be seamlessly integrated and will function as a single application. Thus companies can get all the business activities controlled through a single software. This will help companies to bring more control, more security, automation, minimal data entry, auto-processing and many more.
Let us take the example of :
Order to Cash Cycle
An Enquiry comes from Customers - This will get added to leads in CRM Modules. The Sales Department schedules call with the customer, contacts the customer, negotiates, sends a quotation, follow-ups, assigns the task to another salesperson, and finally sends the Purchase Order. These activities are captured in CRM Modules.
The quotation is converted into Sales Order in Sales Module. Advance is received from customer and captured in Receivable module. The delivery order is created in Inventory Module. Picking slip and packing slip is created in inventory modules. Invoice is created in Sales Module. The Balance amount is received from the customer is entered in the Receivable Module. Invoice is posted into General Ledger. Advance is posted into General Ledger. Delivery Order is posted into General Ledger. Balance payment received is posted into General Ledger.
If you check General Ledger, we can see sales revenue, inventory value, cost of goods sold, receivable outstanding.
The above cycle has functions from modules such as CRM, Sales, Receivables, Inventory and Accounts modules. All integrations and posting happened automatically and as per the business flow defined in the Odoo ERP system, which is the process of business defined in the business SOP. Additional optional modules may also play their role if the organisation's business process has such things as advanced pricing, logistics, shipments, sales incentives, etc.
Procure to Pay
Similar to Order to Cash, where customer order is converted into revenue, purchase flow can also be entered and tracked in Odoo ERP system. Purchase, Inventory, Quality Control, Payable, General Ledger, Shipment, Logistics modules are affected.
Likewise, using Odoo ERP system, you can manage different business functions. Such as Manufacturing Process, Project Management, Material Management, Maintenance, Field Service, and so on...
In short, for any companies growing or aiming for growth, ERP should have control of their process and business.