In order to avoid any confusion when dealing with contacts in OpenERP, we made some changes. The former structure (partner, address, contact) was too complex and so it wasn't so suitable for handling situations like B2C, when you have to deal withindividuals and not with companies.
How will this help you? In the first place, by eliminating res.partner address object there's more clarity of who's who. Before, it was difficult at times for users to understand what's the difference between a partner and a contact, as not everyone you do business with can be called a partner, but on the reverse side, everyone is a contact.
So, we kept the the same features, merged the two menu items (contacts and customers) and kept the functionalities. As a result, now when you want to add any contact details, you can specify if it's a company or an individual. By simplifying the views, there is only one single field where you can add a company name, address, etc.
The biggest change is that, for example, when creating an invoice, you can now select a company or an individual. Whereas, before that was not possible, you were only given the choice of selecting a company.
So, in the future menu (see below), the item Contacts is no longer present in the Sales application, you are just left with Customers. This field will contain both companies and individuals. And with the help of the new filter, you can easily find the information you need. See here more details on the advanced filter
You will be able to find this item in Sales -> Sales -> Contact