diff --git a/nixos/doc/manual/release-notes/rl-2311.section.md b/nixos/doc/manual/release-notes/rl-2311.section.md
index 0b293835f150..661ee58661fa 100644
--- a/nixos/doc/manual/release-notes/rl-2311.section.md
+++ b/nixos/doc/manual/release-notes/rl-2311.section.md
@@ -111,6 +111,8 @@
 
 - The ISC DHCP package and corresponding module have been removed, because they are end of life upstream. See https://www.isc.org/blogs/isc-dhcp-eol/ for details and switch to a different DHCP implementation like kea or dnsmasq.
 
+- `odoo` now defaults to 16, updated from 15.
+
 - `util-linux` is now supported on Darwin and is no longer an alias to `unixtools`. Use the `unixtools.util-linux` package for access to the Apple variants of the utilities.
 
 - `services.keyd` changed API. Now you can create multiple configuration files.
diff --git a/nixos/modules/services/finance/odoo.nix b/nixos/modules/services/finance/odoo.nix
index fee9af574b5d..eec7c4e30cc4 100644
--- a/nixos/modules/services/finance/odoo.nix
+++ b/nixos/modules/services/finance/odoo.nix
@@ -31,6 +31,12 @@ in
         description = lib.mdDoc ''
           Odoo configuration settings. For more details see <https://www.odoo.com/documentation/15.0/administration/install/deploy.html>
         '';
+        example = literalExpression ''
+          options = {
+            db_user = "odoo";
+            db_password="odoo";
+          };
+        '';
       };
 
       domain = mkOption {
@@ -112,11 +118,11 @@ in
     services.postgresql = {
       enable = true;
 
+      ensureDatabases = [ "odoo" ];
       ensureUsers = [{
         name = "odoo";
         ensurePermissions = { "DATABASE odoo" = "ALL PRIVILEGES"; };
       }];
-      ensureDatabases = [ "odoo" ];
     };
   });
 }
diff --git a/pkgs/applications/finance/odoo/default.nix b/pkgs/applications/finance/odoo/default.nix
index cfd181aa4d76..d3436f929ed1 100644
--- a/pkgs/applications/finance/odoo/default.nix
+++ b/pkgs/applications/finance/odoo/default.nix
@@ -44,19 +44,19 @@ let
     };
   };
 
-  odoo_version = "15.0";
-  odoo_release = "20230317";
+  odoo_version = "16.0";
+  odoo_release = "20230722";
 in python.pkgs.buildPythonApplication rec {
   pname = "odoo";
   version = "${odoo_version}.${odoo_release}";
 
   format = "setuptools";
 
-  # latest release is at https://github.com/odoo/docker/blob/master/15.0/Dockerfile
+  # latest release is at https://github.com/odoo/docker/blob/master/16.0/Dockerfile
   src = fetchurl {
     url = "https://nightly.odoo.com/${odoo_version}/nightly/src/odoo_${version}.tar.gz";
     name = "${pname}-${version}";
-    hash = "sha256-nJEFPtZhq7DLLDCL9xt0RV75d/a45o6hBKsUlQAWh1U="; # odoo
+    hash = "sha256-DV5JBY+2gq5mUfcvN9S5xkd+ufgEBjvyvBY1X7pPFPk="; # odoo
   };
 
   unpackPhase = ''