CPQ in Odoo is a product configuration tool that helps businesses sell complex, customizable products by breaking them into components, each with multiple selectable options. It automates pricing calculations based on customer selections, enforces compatibility rules to prevent configuration errors, and seamlessly connects quotes to manufacturing through Bills of Materials (BOMs).

How Does CPQ in Odoo Work?

The Odoo CPQ workflow:

Configure: Select components (frame, upholstery, legs) and their attributes (material, color)
Price: System calculates total based on component costs + optional add-ons
Quote: Generate professional quotation with itemized breakdown
Manufacturing handoff: Auto-create BOM and production orders

Explore Odoo CPQ in detail>>

What Types of Products Need Odoo CPQ?

Odoo CPQ is essential for products where customers choose from multiple options that affect the final product.

Any product with variable configurations benefits from CPQ. This includes furniture with interchangeable parts, machinery with optional attachments, electronics with customizable specs, or services with tiered features. If your sales team spends significant time calculating prices manually or customers frequently order invalid combinations, you need CPQ.

Industries that benefit most:

Furniture: Sofas (fabric, cushions, legs, armrests), office desks, modular storage
Manufacturing: Industrial equipment, custom machinery, configured tool kits
Technology: Build-to-order computers, network equipment, software packages
Automotive: Vehicle customization, aftermarket parts bundles
Construction: Modular buildings, custom window/door configurations

Explore CPQ use cases for different industries>>

How Does CPQ Handle Mandatory vs Optional Components?

Odoo CPQ distinguishes between components customers must select and those they can optionally add.

Mandatory components are required to complete the product, you cannot proceed without selecting them. Optional components can be added for extra functionality or customization. Each component can have default, minimum, and maximum quantity settings to guide customer choices.

Component Type	Required?	Example (Sofa)	Quantity Control
Mandatory	Yes	Frame, Upholstery, Cushions, Legs	Min: 1, Default: 1
Optional	No	Recliner Mechanism, Storage, Armrests	Min: 0, Max: custom or infinite

What Are Compatibility Rules in CPQ?

Compatibility rules control which components, attributes, or values appear based on customer selections.

These rules prevent invalid product combinations by showing/hiding options dynamically. For example, if a customer selects a “Solid Wood Frame,” the system can automatically hide incompatible fabric types or show only relevant armrest styles. This guides customers toward valid configurations without sales team intervention.

Three types of compatibility rules:

Component-level: Show/hide entire optional components (e.g., hide “Recliner” for certain frame types)
Attribute-level: Show/hide attributes within components (e.g., hide “Leather Grade” if fabric is selected)
Value-level: Show/hide specific attribute values (e.g., hide “Black” color for certain materials)

Example: Configure a Sofa in Odoo CPQ

Let’s walk through a real sofa configurator in action.

Product: Custom 3-Seater Sofa

Step 1 – Mandatory Selections:

Frame: Customer selects “Solid Wood Frame” ($400)
Upholstery: Chooses “Premium Leather” fabric ($200)
Cushions: Selects “Memory Foam Cushions” ($150)
Legs: Picks “Walnut Wood Legs” ($50)

Step 2 – Optional Add-ons: Because the customer selected “Solid Wood Frame,” compatibility rules:

Show the “Premium Armrest” option (+$100)
Hide the “Recliner Mechanism” (incompatible with this frame)
Customer adds Premium Armrest

Step 3 – Automatic Pricing:

Base components: $400 + $200 + $150 + $50 = $800
Optional add-on: $100
Total Sale Price: $900

Step 4 – Output: System generates:

Professional quotation with itemized breakdown
Bill of Materials (BOM) with all selected components
If order confirmed: Manufacturing Order (MO) with assembly instructions

The entire process takes 2-10 minutes vs. hours/days of manual calculation and error-checking in standard Odoo.

Already installed CPQ in Odoo? Here’s your user guide>>

Who Can Use Odoo CPQ?

Odoo CPQ is accessible from multiple entry points across your business operations.

Sales teams can configure products directly in quotations and sales orders. Manufacturing can configure from the product form to test BOMs. eCommerce portal users can configure and order products through the website (with three ordering options: Request for Quotation, Get Quote with Price, or Checkout and Pay). Only portal users can access website CPQ—not public visitors.

Access points: