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Odoo 20

Odoo 20: What's New, Pros/Cons and Upgrade Checklist

Odoo 20 explained: new features by app, Light User licensing, pricing changes, inventory close and a complete upgrade checklist.

Released 24 September 2026 at Odoo Experience, Brussels. Sources: official release notes (odoo.com/odoo-20-release-notes) and Odoo 20: The Honest Guide by Andrew Law (, updated 26 Sep 2026). Items marked [Reported] come from partners and are not yet confirmed by Odoo.

1. The 60-second version

5 big wins 5 big watch-outs
Bank entries must come from bank transactions (no manual JEs to the bank account) Employees without a login now cost a Light User licence
"Avalara Included" US/Canada sales tax for SMBs Custom plan price increase (~20 % EU, ~30 % US list)
COGS corrects itself when costs change after delivery AI costs twice: Agentic AI on the Custom plan + IAP credits per use
Suggested min/max reordering levels from demand history Built-in AI billed via Odoo; no bring-your-own key [Reported]
Native MCP server: connect Claude, ChatGPT etc. to Odoo with your access rights Customisations need retesting: record rules moved into access rights, tracking values changed, new icons, new PDF engine [Reported]

2. Functional changes by area

Accounting

  • Bank consistency: every bank-account entry originates from a bank transaction; faster statement validation.
  • Pay vendor bills from Odoo via payment-initiation (PISP); sign now, pay later (bank/country dependent).
  • Bill line prediction (product, account, tax, analytic, even vehicle) from history.
  • Duplicate & double-payment protection (red/yellow warnings; the payment wizard subtracts pending payments).
  • Reconciliation: split a transaction across accounts, batch validation, rerun auto-reconciliation, reconciliation summary; matching rules with tolerance (amount/%) and order per rule; automatic customer invoice reminders.
  • Guided tax returns with automated checks and an auditor agent; loans created from a PDF schedule [Reported].
  • Payment statuses renamed: "In Process" → "Paid"; "Paid" → "Reconciled". Mark as Reconciled moved to the action menu.
  • Fiscal-position tax enforcement: a default tax not in the fiscal position is removed, even with no replacement.
  • Parent accounts replace account groups; depreciation models replace asset models; depreciation by rate.
  • CTA line for currency translation; multi-ledger consolidation; withholding tax breakdown on bills.

Inventory accounting (builds on v19's model)

  • Accruals (Bills to Receive, Billed Not Received, Invoices To Be Issued, Invoiced Not Delivered) posted directly from the valuation closing report into the inventory valuation account.
  • COGS retro-update when a landed cost or bill price arrives after delivery.
  • Inter-company resupply with valuation transferred correctly; synced bills auto-match synced POs.
  • Landed costs per product on a transfer; subcontracting valued from the vendor pricelist; MO overview shows provisional → real cost.
  • Still: no valuation layers, no interim accounts, no JE at receipt/delivery. You must run the close.

Month-end inventory close (do it monthly):

  1. Accounting > Review > Inventory Valuation → date = period end.
  2. Post accruals for Bills To Receive (received, not billed).
  3. Post accruals for Billed Not Received, Invoices To Be Issued, Invoiced Not Delivered.
  4. If you manufacture, review WIP.
  5. Generate and post the stock closing entry; explain the Stock Variation balance.
  6. Compare the inventory account on the balance sheet with the Inventory Stock report. They must match.

Inventory & Purchase

  • Suggested min/max for reordering rules (demand history, days of coverage, order frequency).
  • Stock aging report (Moves Analysis); inventory at a past date with a precise timestamp.
  • Allocate incoming stock from the forecast; vendor quality rate; default Incoterm per vendor; editable expected arrival while keeping the vendor's date; bill-to-PO matching warnings on price/qty.
  • Barcode: bulk lot/serial generation, batch receipt suggestions, backorder choice.
  • Traceability report upstream/downstream; ShipStation and Sendcloud pickup points.

Manufacturing / PLM / Quality

  • Continuous production: record quantities per work order; the next operation starts as soon as some quantity is ready.
  • Work-order Gantt & Kanban, split MOs, single Produce button, auto lot/serial on close.
  • Flexible consumption forced on all MOs.
  • PLM: compare BoMs, product version tracking, ECO cost comparison.
  • Quality: admin bypass, failure location from the check.

Sales / CRM / Subscriptions / Rental

  • Quote section templates, save any quote as a template, edit margin on a line to recompute the price, description-only lines.
  • Payment-based commissions, manager roll-up; periodic pricing rules; price rules per packaging; single-use discount codes; loyalty point expiry.
  • CRM: lead distribution "Always / Limited / Out of rotation", D&B lead generation, pipeline switcher, upsell leads to subscriptions.
  • Rental: working schedules, unified Prices tab.

POS / eCommerce / Website

  • POS: multiple currencies, service fees via presets, product snooze, simpler end-of-session accounting, POS stock without the full Inventory app.
  • eCommerce: returns portal (customers print their own label), pay on invoice (B2B), choose a delivery date, AI product editing, auto cross-sell suggestions, automated review requests.
  • Website: AI website assistant, llms.txt, structured data, mega-menu blocks, age verification.

Operations / Services

  • Phone system inside Odoo: buy numbers, call flows (menus, queues, hours), transcripts on the record.
  • Offline mode across the backend (create/edit/archive/delete; sync later).
  • Field Service app discontinued → folded into Planning (live technician map, routing, travel fees).
  • Project: create from an opportunity, collaborators vs followers, profitability via new reports.

HR / Payroll

  • Pay runs rebuilt; test runs with printed payslips; net-to-gross simulation; % salary raises; choose when payslips are sent.
  • Work entries and the Planning-Payroll integration removed.
  • Appraisals: 360 feedback to any contact, goal roll-up.
  • Attendances: biometric integrations (eSSL, Mantra), check-in photos, overtime analysis.

AI

  • Native MCP server (Enterprise): external AI tools act with the user's access rights. Treat tokens like passwords.
  • Agents create/update records, read files, run from automated/scheduled actions, show live progress, accept voice.
  • "Topics" renamed "Skills"; agent avatars; 30-day conversation storage.
  • All AI features need IAP credits (per service, per database, optional auto-recharge).

Technical (tell your developer)

  • Python 3.12 / PostgreSQL 16 minimum for self-hosting [Reported].
  • XML-RPC/JSON-RPC deprecated in favour of the JSON-2 API [Reported, partners differ].
  • Odoo 20 no longer listens on all interfaces by default (Docker gotcha) [Reported].
  • IoT Box replaced by "Obox" [Reported].
  • OWL 3 front-end; new PDF engine "Paper Muncher" [Reported]; Material Symbols icons.

3. Licensing and pricing (Odoo 20)

Region Custom plan change Light User
United States ~+30 % (Custom $37.40 → $49.00/user/month, yearly, first year) $8.90
Europe +20 % (Standard stays €20) €7.90
India & Gulf Varies by market ~US$5.90 (₹195 in India)
Pakistan & Oman ~+24 % varies
Latin America Custom ~$13.40 ~$2.90

Light User = "any user account indicated as active and designated as a Light User, or any active employee record (HR app) not linked to an active non-portal user account."

  • Light Users can: profile, time off, expenses, appraisals, attendance, view planning/worksheets, POS session sign-in, barcode scanning in the warehouse, read Knowledge.
  • Light Users can't: Sales, Purchase, Projects/timesheets, Accounting, other core apps.
  • Example: 10 users + 150 employees (US Standard): Odoo 19 = $249/month → Odoo 20 = $1,495/month (+≈$14,950/year).

What's in Custom but not Standard: Odoo.sh / on-premise, Studio, Agentic AI, multi-company, external API.

4. Should a customer upgrade?

Situation Advice
Standard plan, few employees without logins, little customisation Upgrade soon: bank controls, reordering, COGS fix with little downside
Custom plan, Studio/custom modules, payroll work entries or Field Service, many HR-only employees Wait a few months; run the licence numbers; let the first fixes land
Either way Upgrade a copy first, test end to end, budget AI credits before building on agents

5. Upgrade checklist (print it)

  • [ ] Count active employee records without a user; estimate the Light User cost; archive leavers.
  • [ ] Confirm plan (Standard/Custom) and regional price with the Odoo account manager.
  • [ ] List every Studio change, custom module, custom report and integration.
  • [ ] Create a duplicate database and run the upgrade there first (upgrade.odoo.com / Odoo.sh staging).
  • [ ] Test a full sales cycle, purchase cycle, bank reconciliation and month-end close on the copy.
  • [ ] Print and compare every custom report and invoice layout (new PDF engine).
  • [ ] Review fiscal positions and default taxes on products (taxes outside the FP are stripped).
  • [ ] Update saved filters/reports using the old payment statuses.
  • [ ] Retrain the team to post bank entries only from bank transactions.
  • [ ] Check integrations for XML-RPC/JSON-RPC; plan the move to the JSON-2 API.
  • [ ] Decide the AI approach: Odoo credits, MCP with your own AI tool, or none for now; give AI a limited-access user.
  • [ ] If you use Field Service or payroll work entries, redesign them on Planning / new pay runs.
  • [ ] Train users on the new look, renamed statuses and removed features.
  • [ ] Schedule production upgrade after the first round of fixes, unless savings are urgent.

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