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what is t technical understanding behind openerp's communication to postgresql ?

if a user selects a db in openerp UI and do a data insertion or updation or deletion how it affects in the relevant db in postgresql ?

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Look at the main.py File method available to Create, Drop Database

https://github.com/odoo/odoo/blob/8.0/addons/web/controllers/main.py

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Openerp/Odoo uses it's own ORM for comunicating to database. So all(almost) operations are layered through ORM and don't go directly to database, but finally every change appears in database.

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