Oracle License Management Services (LMS) conducts audits of Oracle EBS customers with increasing frequency. Their methodology is systematic: LMS scripts interrogate your Oracle Database, WebLogic servers, and application tier to extract usage metrics that they then compare against your license entitlements. The gap between what they find and what you've licensed becomes an audit claim — and these claims regularly reach seven or eight figures for large enterprises.
The oracle ebs compliance checklist below is organized across five compliance domains: application user licensing, technology stack, database options, virtualization, and contractual compliance. Addressing each item proactively through an Oracle compliance review before an audit is always more cost-effective than remediating under LMS pressure.
Domain 1: Application User Licensing (Items 1–7)
Run Oracle's standard user count query against FND_USER and compare active users against licensed NUP counts. Terminated employees who still have active accounts are a common LMS finding.
Oracle's NUP metric requires a license for each named individual. Shared accounts used by multiple people are non-compliant. Each person using a shared account requires their own NUP license.
Oracle iSupplier Portal, iStore, and Customer Self-Service expose EBS data to external parties. These users require NUP licenses unless covered by specific application licenses with external use rights.
Compare FND_RESPONSIBILITY assignments against contracted module list. Users accessing modules not covered in your license schedule creates direct compliance exposure.
Oracle Workflow creates automated users that process approvals and notifications. These system accounts typically do not require NUP licenses, but LMS occasionally challenges them. Confirm exclusion basis in your contract.
Some EBS modules use concurrent user metrics. Verify that concurrent user peaks don't exceed licensed counts and that NUP minimums (typically 25 per Processor for technology, different for application modules) are met.
HR Self-Service, Manager Self-Service, and Employee Self-Service may have different user licensing than core HR Professional users. Verify that self-service users are appropriately licensed under the correct metric.
Domain 2: Technology Stack Licensing (Items 8–13)
Apply the Core Factor Table to all physical cores on Oracle Database servers. Intel x86 cores use a 0.5 factor. Document this calculation and retain it — LMS will perform their own calculation and you need a defensible counter-position.
EBS 12.2 runs on Oracle WebLogic Server. Confirm that WebLogic is included in your Applications license bundle and that the scope of use (EBS only vs. additional applications) matches your contract.
Oracle Forms and Reports licenses bundled with EBS are restricted to EBS application use. Custom applications built on Oracle Forms that are independent of EBS require separate Forms technology licenses.
Oracle allows active-passive DR environments to run without full license duplication if specific conditions are met — the DR environment must not be used for testing, development, or any active processing. Confirm your DR setup meets these conditions or that you have appropriate DR licenses.
Many Oracle contracts include restricted rights for test and development use. These rights typically limit usage to non-production purposes and often cap server sizes. Verify your test environments fall within these limits.
Older EBS 11i deployments using Oracle Application Server may have separate licensing requirements distinct from WebLogic. Confirm which technology stack version you're running and that licensing is current.
Not sure which of these checklist items apply to your environment? Our advisors conduct confidential compliance assessments that identify exposure before Oracle does. We work exclusively for buyers — never for Oracle.
Get a Confidential Assessment →Domain 3: Database Options and Management Packs (Items 14–18)
The Diagnostics Pack activates when DBAs access certain Enterprise Manager screens or AWR reports. Run Oracle's USMM or LMS scripts to verify whether this pack has been accessed — it lists at $10,000 per Processor.
The Tuning Pack activates through SQL Tuning Advisor, SQL Access Advisor, and certain DBMS_SQLTUNE package calls. Many DBAs use these features without knowing they're licensed separately at $5,000 per Processor.
Oracle Partitioning is automatically available in Enterprise Edition but requires a separate license at $11,500 per Processor. EBS 12.2 uses partitioning natively for some schema objects — verify this is covered in your contract.
Oracle Advanced Compression at $11,500 per Processor enables compression on all database objects. Basic compression (available without this option) is more limited. Verify which compression features are being used in your EBS environment.
Oracle RAC for high availability requires a RAC license in addition to Database Enterprise Edition. The RAC option is priced at $23,000 per Processor. Verify all RAC nodes are covered, including standby nodes if they participate in the cluster.
Domain 4: Virtualization and Cloud (Items 19–22)
Oracle's virtualization policy requires licensing all physical cores in a VMware cluster unless hard partitioning prevents Oracle from accessing those cores. This is Oracle's most aggressive audit position and has produced the largest EBS audit settlements in the industry.
If using Oracle VM for hard partitioning, ensure the partition boundaries are properly configured and documented. Oracle requires specific configuration standards before they accept hard partitioning as a license boundary.
EBS running on AWS, Azure, or OCI under BYOL requires that Oracle Database licenses are authorized for cloud use. Not all Oracle license agreements include cloud deployment rights. Verify your contract includes rights to run on your cloud platform.
Middleware, ETL tools, and reporting platforms that connect directly to Oracle Database schemas may be considered Oracle Database users. Verify that connections from non-Oracle middleware are covered under your existing license or that connection-based licensing applies.
Domain 5: Contractual and Support Compliance (Items 23–25)
Oracle will not investigate or support license compliance issues for products where support has lapsed. More critically, allowing support to lapse and then reinstating it requires back-payment of all lapsed support fees plus reinstatement charges.
Original Oracle ordering documents, quote sheets, and contract schedules define your license entitlements. LMS will request these documents. Customers who cannot produce them are at a significant disadvantage in negotiating audit findings.
Mergers, acquisitions, and divestitures can create license compliance exposure if Oracle licenses weren't properly transferred. Oracle's standard contract prohibits assignment without Oracle's written consent. Undocumented M&A activity is a common LMS audit trigger.
Using This Checklist Effectively
This oracle ebs compliance checklist functions as a gap analysis framework. Working through each item requires access to your Oracle license contracts, your Oracle Database environment (to run usage queries), and your infrastructure documentation. The goal is to identify gaps before Oracle does — and to address them either through remediation or contractual restructuring.
For items where gaps exist, the remediation path depends on materiality and timeline. Minor gaps discovered during a self-assessment can often be addressed by restructuring user counts or disabling unused database features. Material gaps — particularly those involving VMware or unlicensed database options — typically warrant engaging an independent advisor before any communication with Oracle.
Our complete Oracle EBS Licensing Guide covers the full compliance framework in detail, including how Oracle structures audits, what LMS scripts actually capture, and how to interpret the findings.
For enterprises that have received an Oracle audit notification, the timeline for response is typically 30 days. That window is insufficient to remediate material gaps — but it is sufficient to build a defensible position with expert support. See our Oracle audit defense guide for the immediate response protocol.
Download our Oracle EBS compliance white papers for detailed remediation frameworks and case studies of audit outcomes that were significantly reduced through proactive preparation.
Oracle Licensing Experts is not affiliated with Oracle Corporation. All compliance guidance is based on independent advisory experience and publicly available Oracle licensing policies.