Most decision makers are used to their teams being paid to spend time and effort on tasks that cannot be done on their ERP.
This has become their norm.
In this scenario, any basic ERP can fit, since the users will require 3rd party report development services every month.
Scenario 1: 10 Users (Single Entity, Single Currency)
| Cost Factor | NetSuite Limited | Odoo | ERPNext |
|---|---|---|---|
| Software Cost | $500 + ($60×10) = $1,100/month | $10×10 = $100/month | $50/month |
| Custom Reports | $0 (user-built) | $1,500/report (dev cost) | $1,500/report (dev cost) |
| TCO (5 reports/month) | $1,100 | $100 + $7,500 = $7,600 | $50 + $7,500 = $7,550 |
| Winner: 🏆 NetSuite (saves $6,500/month). |
Scenario 2: 20 Users, 5 Subsidiaries (Single Currency)
| Cost Factor | NetSuite Enterprise | Odoo | ERPNext |
|---|---|---|---|
| Software Cost | $1,120 + ($60×20) + $900 = $3,220/month | $10×20 = $200/month | $50/month |
| Consolidation Labor | $0 (automated) | $6,000/month (accountant) | $6,000/month (accountant) |
| Reports (5/month) | $0 | $1,500×5 = $7,500 | $1,500×5 = $7,500 |
| Total Monthly TCO | $3,220 | $200 + $6,000 + $7,500 = $13,700 | $50 + $6,000 + $7,500 = $13,550 |
| Winner: 🏆 NetSuite (saves $10,480 – $10,330/month). |
Scenario 3: 150 Users, 5 Subsidiaries, 4 Currencies
| Cost Factor | NetSuite Enterprise | Odoo | ERPNext |
|---|---|---|---|
| Software Cost | $1,120 + ($60×150) + $900 + ($350×3) = $12,770/month | $10×150 = $1,500/month | $50/month |
| Consolidation Labor | $0 (automated) | $6,000/month (accountant) | $6,000/month (accountant) |
| Reports (20/month) | $0 | $1,500×20 = $30,000 | $1,500×20 = $30,000 |
| Total Monthly TCO | $12,770 | $1,500 + $6,000 + $30,000 = $37,500 | $50 + $6,000 + $30,000 = $36,050 |
| Winner: 🏆 NetSuite (saves $24,730–$23,280/month). |
Why NetSuite Still Dominates
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Labor Costs Aren’t the Whole Story:
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$6,000/month = $72k/year — this is below market rate for a skilled multi-currency consolidation accountant (typical: $100k–$150k).
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Even at this “discounted” salary, Odoo/ERPNext TCO is 2.9–3.5× higher than NetSuite in global scenarios.
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Hidden Costs in Manual Processes:
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Errors: Manual FX/consolidation mistakes → restatements, audit fees, tax penalties.
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Delays: 15-day month-end close vs. 3 days in NetSuite → slower decisions.
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Developer Dependency: Every report change halts operations for 3–5 days.
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Scalability = NetSuite’s Superpower:
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Adding 50 users in NetSuite: +$3,000/month.
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In Odoo/ERPNext: Same $6k accountant struggles → hires second accountant (+$6k/month).
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When Do Odoo/ERPNext Win?
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Tiny Entities: ≤5 users, 1 subsidiary, 0 reports → Odoo costs $50/month.
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Static Single-Currency: Pre-built reports only (no changes), local compliance irrelevant.
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Labor Arbitrage Hacks: If you pay the accountant $2,000/month (offshore) and need <1 report/month.
The Irony of “Cheap” ERPs
Odoo/ERPNext appear affordable until you need them to do core ERP tasks (consolidation, reporting, compliance). Then, their TCO explodes due to:
Labor inflation ($6k accountant + $30k reports = $36k),
Productivity tax (finance team stuck in spreadsheets),
Risk premiums (errors → fines, reputation loss).
NetSuite charges upfront for automation — but this removes $10k–$30k/month in hidden labor/risk costs.
Final verdict: NetSuite still wins in all 3 scenarios. The accountant’s salary would need to drop to ≤$2,000/month for Odoo/ERPNext to compete in Scenario 2/3 — and even then, risk/agility gaps remain.
Do you agree? Share your thoughts in the comments below.