Many students start learning Odoo the same way: they sign up for a free trial, open the Accounting app, create an invoice, and then get stuck.
“Why is my invoice still in Draft?”
“What’s a journal, and which one should I use?”
“Why doesn’t my payment show as paid?”
“What’s this Bank Suspense Account?”
“Should I use Odoo Online or Odoo.sh? What’s the difference?”
Then they search YouTube, watch videos recorded on a different Odoo version with different screens, and become even more confused.
The good news: Odoo isn’t difficult once you understand how it thinks. This guide explains the difference between Odoo Online and Odoo.sh, why entries feel confusing at first and how to learn Odoo properly.
Screens and labels change between Odoo versions. Odoo 20 was released in September 2026, so what you see may differ slightly from older tutorials.
First, what are Odoo Online, Odoo.sh and on-premise?
Odoo can be used in three main ways. Many beginners don’t realise these are different, and it causes confusion when following tutorials.
Odoo Online (SaaS)
Hosted and managed by Odoo
You open it in your browser and start working, with no installation
Includes Odoo’s standard apps, plus Odoo Studio for no-code changes
Custom-coded and third-party modules can’t be installed
Odoo handles upgrades to newer versions
Best for: small and medium businesses using standard features, and beginners learning Odoo functionally
Odoo.sh (Platform as a Service)
Odoo’s cloud platform for Odoo Enterprise, built for projects that need customisation
Connects to GitHub, so developers can deploy custom and third-party modules
Has separate development, staging and production branches for testing before going live
Includes hosting, backups and monitoring
Best for: businesses that need custom modules, and developers and technical consultants
On-premise (self-hosted)
Installed on your own server or a cloud server you manage
Can run Community (free, open source) or Enterprise (licensed) editions
Full control, but you’re responsible for hosting, security, backups and upgrades
Best for: businesses with IT teams or specific hosting needs, and developers practising locally
Odoo Online vs Odoo.sh vs on-premise at a glance
Odoo Online | On-premise | ||
|---|---|---|---|
Hosted by | Odoo | Odoo (cloud platform) | You or your provider |
Edition | Enterprise | Enterprise | Community or Enterprise |
Custom code modules | ✗ | ✓ | ✓ |
Third-party apps | ✗ | ✓ | ✓ |
Odoo Studio (no-code) | ✓ | ✓ | ✓ (Enterprise) |
Staging and test branches | ✗ | ✓ | Set up yourself |
Server management | None | Minimal | Full responsibility |
Technical skill needed | Low | Medium to high | High |
Best for learners who want to be | Functional consultants and users | Technical consultants and developers | Developers and system admins |
The key point for students: recording entries, invoices, payments and reconciliations works the same way in all three. The difference is mainly in hosting and customisation, not in day-to-day use. So if you master Odoo functionally, your skills transfer to every type of Odoo setup.
Choosing a career path? Read Odoo Functional vs Technical: Which Path Should You Choose?
Why Odoo entries feel difficult for beginners
1. Everything in accounting is a “journal entry”
In Odoo, invoices, bills, payments and manual entries are all journal entries with different types. Beginners don’t realise that creating an invoice is creating an accounting entry, so they sometimes record the same thing twice.
2. Journals confuse people
Odoo groups entries into journals, such as:
Sales for customer invoices
Purchase for vendor bills
Bank for each bank account
Cash for cash transactions
Miscellaneous for manual journal entries
Choosing the wrong journal puts entries in the wrong place and makes reports confusing.
3. Draft vs posted
In Odoo, invoices and entries start as Draft. They don’t affect the accounts until they’re Confirmed (Posted). Students often create entries, forget to post them and wonder why reports show nothing.
4. Payments and “outstanding” accounts
When you register a payment, Odoo may first record it in an outstanding receipts or outstanding payments account, then clear it when the bank statement line is reconciled. Beginners see these accounts and think something has gone wrong.
5. Bank reconciliation and the suspense account
Imported bank statement lines sit in a Bank Suspense Account until you match them with invoices, bills or payments. If they’re not reconciled properly, balances look wrong.
6. Taxes on every line
Taxes are applied per invoice line. A wrong or missing tax on one product line changes tax reports and totals.
7. Inventory and accounting links
If inventory valuation is linked to accounting, stock receipts and deliveries create accounting entries too. Students who learn only the Accounting app miss half the picture.
8. Lock dates
Once a period is locked, entries can’t be posted into it. This confuses learners who try to back-date transactions.
9. Learning from mismatched videos
A tutorial recorded on an older version, or on Community instead of Enterprise, can show menus that don’t exist in your database.
10. No one to ask
With a free trial and videos, there’s no trainer to explain why something happened, which is the most important part of learning.
The core Odoo entries every learner must master
# | Entry or process | What you learn |
|---|---|---|
1 | Customer invoice | Creating, confirming, taxes and sending to customers |
2 | Customer payment | Registering payments and partial payments |
3 | Credit note | Correcting or reversing invoices properly |
4 | Vendor bill | Recording supplier bills from purchase orders |
5 | Vendor payment | Paying suppliers, single or in batches |
6 | Manual journal entry | Adjustments, accruals and opening balances |
7 | Bank reconciliation | Matching bank lines with invoices, bills and payments |
8 | Cash transactions | Petty cash and cash sales |
9 | Inventory receipts and deliveries | How stock movements affect accounts |
10 | Reports | General ledger, aged receivable and payable, P&L, balance sheet, tax reports |
Each of these has a business reason behind it. Once you understand the reason, the screens make sense.
New to bookkeeping concepts? Read Bookkeeping Made Simple and Why Accounting Training Is Essential for Reliable ERP Data.
A simple example: one sale, start to finish
Scenario: you sell goods worth PKR 100,000 plus 18% sales tax on credit, and the customer pays a week later by bank transfer.
Create a quotation in Sales and confirm it as a sales order
Deliver the goods from Inventory (stock is reduced, and cost of goods sold is recorded if valuation is automated)
Create the invoice from the sales order, check taxes and Confirm it
The customer’s balance shows PKR 118,000 receivable
When the money arrives, register the payment or reconcile the bank statement line with the invoice
The invoice shows Paid, and the bank balance and receivables update
Common beginner mistakes in this flow:
Creating a manual invoice as well as one from the sales order, so the sale is duplicated
Forgetting to confirm the invoice
Registering the payment and creating a separate journal entry for the same money
Leaving the bank line unreconciled in the suspense account
A live trainer can catch each of these as it happens. A video can’t.
Is self-learning with a free trial enough?
A free trial is a good way to explore, but most students struggle to become job-ready from it alone:
Free trial + videos | Structured live training | |
|---|---|---|
Access to Odoo | Temporary | Your own training account |
Version matches the lessons | Often not | Yes |
Explains why, not just how | Rarely | Yes |
Answers your questions live | No | Yes |
Full business cycles | Pieces | End-to-end |
Case studies | Rarely | Yes |
Practical assessment | No | Yes |
Support after learning | No | Yes |
Read Free vs Paid ERPNext Training. The same lessons apply to Odoo.
Why students should learn Odoo now
Global demand: Odoo is used by businesses in many countries, including Pakistan, the Gulf, Europe and Africa
Career options: functional consultant, ERP support executive, accounts executive, implementation consultant and freelancer
Freelancing: setup, data migration, reports and training for clients worldwide. See ERPNext and Odoo Freelancing.
Certification: Odoo offers an official certification. Training first gives you the best chance of passing. See the ERPNext and Odoo Certification Guide.
Job advantage: most graduates list “MS Office.” Few can demonstrate Odoo. See ERP Jobs for Fresh Graduates in Pakistan.
Your Odoo learning roadmap
Step 1: Understand the basics.
Navigation, contacts, products, sales, purchases, inventory and invoicing.
Step 2: Master accounting entries.
Journals, draft and posted entries, invoices, bills, payments, credit notes and manual entries.
Step 3: Learn bank reconciliation.
Statement lines, matching, the suspense account and outstanding accounts.
Step 4: Connect inventory and accounting.
How receipts, deliveries and valuation affect the books.
Step 5: Run and read reports.
General ledger, aged receivables and payables, P&L, balance sheet and tax reports.
Step 6: Practise full case studies.
A trading company, a service company and a small manufacturer.
Step 7: Choose your path.
Functional consultant (configuration and training), or technical (Odoo.sh, custom modules and development).
Step 8: Build a portfolio and consider certification.
Learn Odoo with Bizloom Academy
Bizloom Academy is run by a team that implements Odoo and ERPNext for real businesses, so we teach Odoo the way it’s actually used, not just where the buttons are.
What you get:
Live, instructor-led online classes, 60 minutes each
Your own Odoo training account for hands-on practice
Step-by-step practice with invoices, bills, payments, journal entries and reconciliation
Real business case studies
Exercises, assignments and a practical assessment
Learning support after the course
A Bizloom certificate on completion (a training certificate from Bizloom, not an official Odoo certification)
Because functional Odoo works the same way on Odoo Online, Odoo.sh and on-premise, the skills you learn apply to whichever setup your employer or client uses.
Courses and fees:
Course | Live sessions | Fee |
|---|---|---|
6 | PKR 10,000 | |
10 | PKR 25,000 | |
Odoo Functional Consultant Program (4 courses) | 26 | PKR 40,000 (instead of PKR 65,000) |
Pay in two instalments, or save 5% by paying in full
48-hour money-back guarantee after your first live session (see policy)
Join from anywhere in Pakistan or abroad. See ERPNext and Odoo Training in Karachi, Lahore and Islamabad and Learn Online from the UAE, Saudi Arabia or Qatar.
Interested in the technical side (Odoo.sh, custom modules)? Message us on WhatsApp to ask about the technical track.
View Odoo courses | Enrol now | WhatsApp us
More reading: Odoo Course in Pakistan and ERPNext vs Odoo.
FAQs
1. What’s the difference between Odoo Online and Odoo.sh?
Odoo Online is Odoo’s hosted SaaS with standard apps and Studio, but no custom code modules. Odoo.sh is Odoo’s cloud platform for Enterprise that supports custom and third-party modules, GitHub integration and staging branches.
2. Which should a student learn on: Odoo Online or Odoo.sh?
For functional skills such as entries, invoicing, accounting and inventory, it doesn’t matter. Day-to-day use is the same. Odoo.sh matters mainly if you want to become a developer.
3. Why is my Odoo invoice not showing in reports?
It’s probably still in Draft. Invoices and entries only affect the accounts once they’re confirmed (posted).
4. What is the Bank Suspense Account in Odoo?
It temporarily holds imported bank statement lines until you reconcile them with invoices, bills or payments.
5. Why does Odoo use outstanding receipts and payments accounts?
Depending on the setup and version, registered payments may sit in these accounts until they’re matched with the bank statement during reconciliation.
6. Can I learn Odoo from a free trial and YouTube?
You can explore, but videos often show different versions, and there’s no one to answer questions. Structured live training with practice is faster and more reliable.
7. Do I need coding to learn Odoo?
No. Functional Odoo (entries, configuration, reports and training users) doesn’t need coding. Coding is needed only for technical and developer roles.
8. Can I join Bizloom Academy’s Odoo training from outside Pakistan?
Yes. All classes are live online, and learners join from the Gulf and other countries.