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When to define a Connected App?

We've created an app which uses OAuth2 to connect to SalesForce and with the REST API we then periodically submit data (create custom objects) this all works fine now in our test/dev environment.

We began by defining a Connected App - in our salesforce account - and used the client-id and secret - used when creating the authorization URL, this all works fine in our environment.

My question is that when we hand the app to customers must they also create a connected app within their system? and must the app then use the client-id and secret thet THEY get when the create the app?

I'm totally confused about this - whether the client-id/secret is somehow "ours" (the app vendors) or "theirs" (specific to each customer that wishes to use our app).

Apologies if this is explained somewhere but any help much appreciated!