How do transactions work on Candex, and who is responsible for each step? This article explains the full flow, from the moment a Buyer creates an order to the moment the Seller receives payment. It applies to both Buyers and Sellers (also called suppliers or vendors) and explains what each party needs to do at each stage.

The key principle: Candex sits in the middle

Candex acts as a master vendor (vendor of record) between the Buyer and the Seller. This means:

• Sellers do not invoice the Buyer directly. Sellers upload their invoices and address them to Candex. Candex verifies the Seller invoice and then issues its own invoice (the Candex Invoice) to the Buyer.
• Buyers do not pay the Seller directly. Buyers pay Candex in satisfaction of the Candex Invoice. Once Candex confirms receipt of the Buyer's payment, Candex pays the Seller in satisfaction of the Seller’s invoice addressed to Candex.

Because of this structure, neither party needs to set up the other in their internal systems. Candex handles third-party screening, contracting, invoicing,  and payment on both sides.

The flow, step by step

Step 1: The Buyer creates the order

• Who acts: Buyer
• What happens: The Buyer creates a purchase order (PO) addressed to Candex through their company's internal procurement system (for example, via punchout) or directly on the Candex platform.
• What the Seller sees: Nothing yet. The Seller has not been notified.

Step 2: The Seller is notified and accepts the order

• Who acts: Seller
• What happens: Candex emails the Seller the order details and a link to either register (on their first order) or log in. The Seller then accepts the order's terms and conditions. If the Seller is new to Candex, compliance screening is performed during registration.
• What the Buyer sees: The order status shows Pending Accept until the Seller accepts. Once the Seller accepts, the status changes to Awaiting Use.

Seller tip: Log in with the email address the order was sent to. If you use a different email address, you won't see the order. If you don't see the invitation email, check your spam folder.

Buyer tip: If your Seller says they didn't receive the order, confirm the email address on the order and check that the order was created successfully.

Step 3: The Seller uploads the invoice

• Who acts: Seller
• What happens: After delivering the goods or services, the Seller logs in to Candex, selects the order, and uploads the invoice with the required details: invoice amount, invoice file, and bank and tax information. The Seller also selects the banking entity (Pay To) where they want to receive payment.
• What the Buyer sees: The order status changes from Awaiting Use to Used, and a payment entry appears in the order details. The Buyer does not receive a Candex invoice yet, because the Seller's invoice must first pass verification.

Seller tip: Double-check your invoice before uploading. Common reasons for rejection are:

• an incorrect addressee (the invoice should usually be addressed to Candex, not the Buyer)
• an amount that exceeds the PO
• bank details that don't match your Pay To entity
• an incorrect invoice date

Step 4: Candex verifies the Seller and the invoice (status: Seller Verified)

• Who acts: Candex
• What happens: Candex runs these checks in order:
  1. Compliance review/Entity verification of the Seller and the transaction (if the entity is not already verified).
  2. Bank verification, if the bank account is not already verified.
  3. Invoice verification: correct addressee, amount within the PO, matching bank details, a valid invoice date, and the correct currency.
• This typically takes around 1-2 business days when all Seller information is in order.
• If verification passes: The payment status updates to Invoice Buyer and then Pending Buyer Payment. 
• If verification fails: The Seller's invoice is rejected. The Seller receives an email with the rejection reason and a link to resubmit a corrected invoice. The payment status updates to Pending Resubmit. The Buyer is not affected, because no Candex invoice has been issued yet.

Seller tip: Entity and bank verification happens on your first order, after you change your bank details, or when more than one year has passed since your last verification. You may be asked to upload a voided cheque, a bank statement, or a signed bank letter.

Step 5: Candex issues the Candex invoice to the Buyer (status: Pending buyer payment)

• Who acts: Candex
• What happens: Once the Seller's invoice is verified, Candex issues its own invoice to the Buyer through the normal invoice delivery channel for that order. This is the invoice the Buyer reviews and pays.
• What the Seller sees: The payment status updates to Pending buyer payment. The Seller does not need to do anything.
• What the Buyer sees: The Candex invoice arrives through the Buyer's standard invoice channel. The Buyer can also download it from Payment Details, in the Buyer section.

Step 6: The Buyer reviews and pays the Candex invoice

• Who acts: Buyer
• What happens: The Buyer reviews the Candex invoice in their internal system (goods receipt, invoice approval, or an equivalent workflow). The Buyer then pays Candex according to the payment terms agreed for the order. The Buyer sets the payment terms, which can vary by order (for example, Net 30 or Net 45 from the invoice date).
• What the Seller sees: The payment status updates to Payment coming once Candex confirms receipt of the Buyer's payment. If any of the verification checks were not properly validated previously, the payment status will revert to the relevant stage (e.g., Bank Verification Needed).

Important for Sellers: The payment due date is calculated from the invoice date recorded in Candex and the order payment terms. This date may be later than the date you created your invoice if uploading or verification was delayed. As a general rule–and as noted in Candex’s order terms–Candex does not pay Seller invoices until it receives the funds from the Buyer.

Buyer tip: You can see the payment terms for an order on the Order Details page or in Payment Details.

Step 7: Candex pays the Seller (status: Payment coming/Paid)

• Who acts: Candex
• What happens: After confirming receipt of the Buyer's payment, Candex sends the funds to the Seller's bank account by wire transfer or ACH, within 3 business days.
• What the Buyer sees: The payment status updates to Paid. The payment cycle is complete.

Who is responsible for what

The Buyer:

• Creates a purchase order to Candex.
• Reviews and pays the Candex invoice according to the payment terms.

Candex:

• Issues the order to the Seller and sends notifications and reminders.
• Verifies and screens the Seller's  entity, bank account, and invoice.
• Issues the Candex Invoice to the Buyer.
• Pays the Seller in satisfaction of the Seller’s invoice to Candex, typically within 3 business days of receiving the Buyer's payment.

The Seller:

• Accepts the order terms.
• Uploads the invoice with bank and tax information.
• Corrects and resubmits the invoice if it is rejected.

How to track the payment status

Both Buyers and Sellers can check where a payment stands:

1. Log in to Candex, go to the Order Feed, and select the relevant order.
2. Click the payment in the order details.
3. Open Payment Details to see the current stage: Seller Verified, then Candex Invoice, then Paid by Buyer, then Paid to Seller.

Common questions

Why doesn't the Seller invoice the Buyer directly?
Candex acts as the vendor of record. The Buyer's relationship is with Candex, so Candex issues the invoice. This means the Buyer doesn't need to onboard each individual Seller into their procurement system.

Who sets the payment terms?
The Buyer sets the payment terms and can customize them for each order. The Seller can see the payment terms on the order before accepting it. After accepting, the Seller can find them in Order Details or Payment Details.

Can the Seller be paid before the Buyer pays Candex?
Candex complies with the payment terms described on our orders to each Seller. These generally require confirmation of receipt of funds from the Buyer. What happens if the Buyer's approval takes a long time?
Candex cannot control the Buyer's internal approval or payment timelines. If you are a Seller and believe there is an unusual delay, either reach out to your Buyer directly or contact support@candex.com and Candex will follow up with the Buyer.

What happens if the Seller's invoice is rejected?
The Seller receives an email with the rejection reason and a link to resubmit a corrected invoice. The Buyer is not affected, because Candex does not issue a Candex invoice until the Seller's invoice passes verification.