Oracle EBS License Compliance Checklist
Oracle E-Business Suite (EBS) compliance requires regular review of your user accounts, module usage, and license entitlements.
The following Oracle EBS license compliance checklist will help your team validate users, modules, customizations, and entitlements to stay compliant and avoid audit exposure by catching potential issues before Oracle’s auditors do. Neglecting these checks can lead to costly compliance gaps that Oracle auditors love to find.
Read our ultimate updated guide, Oracle E-Business Suite Licensing Guide – 2026 Edition.
Step 1 – Review All EBS Users and Responsibilities
Oracle EBS user licensing is tied to each user’s responsibilities.
Begin your review by listing all active users and their assigned responsibilities, and verify the user count aligns with your licensed entitlements (no one has more access than necessary).
Checklist: User & Responsibility Review
- ✔ Pull a list of all active EBS usernames
- ✔ Extract the assigned responsibilities for each user
- ✔ Validate each user’s license type based on their responsibilities
- ✔ Remove or deactivate any inactive or redundant user accounts
- ✔ Map generic or shared accounts to individual users
- ✔ Review responsibility assignments for unnecessary access
Table: User Licensing Validation
| Item | What to Check | Why It Matters |
|---|---|---|
| Active users | Count must match entitlements | Prevents over- or under-licensing |
| Responsibility alignment | Roles must match license type | Avoids user misclassification |
| Dormant accounts | Disable or remove if no longer needed | Eliminates wasteful licenses |
| Shared accounts | Assign to specific individuals | Removes audit red flags |
| System accounts | Ensure system/integration accounts are licensed | Often overlooked |
Remember, most Oracle EBS audit findings start with incorrect responsibility mapping. A clean user list aligned with proper responsibilities is your first defense against non-compliance.
Step 2 – Validate Module Access Against Entitlements
Each Oracle EBS module has its own licensing rules, so make sure you’re only using modules you’ve actually purchased. Any enabled module not in your contract is a compliance gap, so double-check that your entitlements cover every active module.
Checklist: Module Access Review
- ✔ Identify all Oracle EBS modules currently enabled or in use
- ✔ Compare module usage to purchased entitlements
- ✔ Pay extra attention to high-risk modules (e.g., Payroll, Order Management, Manufacturing)
- ✔ Review any transaction-based modules for usage metrics (e.g., order lines, financial transactions)
- ✔ Document any active module not purchased
Table: Module Compliance Overview
| Module Category | Risk Level | Check Required |
|---|---|---|
| Financials | Medium | Verify use matches Financials license |
| HRMS (HR) | High | Check employee-based metrics |
| Payroll | Very high | Validate payroll counts |
| Order Management | High | Check order volume vs license |
| Manufacturing | High | Verify manufacturing usage vs license |
| Procurement | Medium | Check internal vs external access |
Step 3 – Review HR, Employee, and Payroll Counts
HRMS and Payroll modules use employee-based licensing metrics, meaning even people who never log in can still count against your licenses. Reconcile your EBS employee counts with your HR data regularly to keep those license numbers accurate.
Checklist: Employee-Based Metric Review
- ✔ Confirm the total number of active employees in your HR system
- ✔ Confirm the number of employees processed through Oracle Payroll
- ✔ Track contractors and contingent workers if your licenses include them
- ✔ Ensure counts reflect only the active workforce by excluding terminated employees
- ✔ Align headcount between HR records and EBS license counts
Table: Employee Metrics Validation
| Metric | What It Includes | Compliance Note |
|---|---|---|
| Employees (HRMS) | All active employees (even if not EBS users) | Non-users still count |
| Payroll employees | All individuals receiving payroll (employees and contractors) | Key audit area |
| Contingent workers | Contractors or temp workers in HR records | Verify contract inclusion |
| Self-service users | Employees with self-service access (ESS) | Often underestimated license need |
For HR and Payroll modules, compliance depends on accurate headcount, not just active user accounts. Always use real HR data to validate these numbers, because any headcount discrepancy can become an audit finding.
Also read, Complete Oracle EBS Application Module List.
Step 4 – Audit Customizations and Integrations
Even if user access is locked down, a custom program might tap into functionality you didn’t license (for example, a time entry customization pulling HR or Payroll data). Audit all custom components to ensure they aren’t inadvertently expanding your EBS license usage.
Checklist: Customization & Integration Review
- ✔ Review all custom screens or reports that call EBS APIs
- ✔ Verify that custom workflows don’t access functionality from modules you haven’t licensed
- ✔ Map integration user accounts to proper license types
- ✔ Audit any RPA bots that log into EBS
- ✔ Check BI/reporting tools that query EBS for unlicensed module access
Table: Customization Impact Risks
| Customization | Potential Licensing Impact | Why It Matters |
|---|---|---|
| Custom time entry screen | Might invoke HR/Payroll functionality | May trigger HR/Payroll license |
| API-based integrations | Use of generic/system accounts | Integration accounts need licenses |
| Robotics automation (RPA) | Runs as a full user would | Bots may need full user license |
| Custom dashboards/reports | Access to read data from modules | Read-only still requires license |
Customizations can unintentionally expand your licensing footprint. Always assess each custom component to determine whether it accesses modules or data outside your licensed entitlements.
Step 5 – Validate Non-Production Environments
Test, development, and training instances follow the same licensing rules as production; unless your contract says otherwise, any environment where EBS is installed must be fully licensed. Track all non-production instances and ensure their users and modules are covered, just as in production.
Checklist: Non-Production Licensing
- ✔ List all EBS instances beyond production (e.g., test, development, training)
- ✔ Confirm each non-production instance is fully licensed
- ✔ Verify that module usage in test/dev environments doesn’t exceed what’s licensed for production
- ✔ Document each environment’s purpose and keep it separate from production data
Table: Non-Production Compliance
| Environment | Licensing Required? | Notes |
|---|---|---|
| Test | Yes | Must mirror production licensing |
| Development | Yes | Same rules as production |
| Training | Yes | Often forgotten, needs licensing |
| Performance/Staging | Yes | High-risk usage |
Treat non-production environments the same as production — if EBS is installed and being used, it needs to be licensed. Don’t assume test or dev systems are free to use without oversight.
Step 6 – Reconcile EBS Usage With Contract Entitlements
Cross-reference all findings from the previous steps with what you purchased — your Oracle license agreements list the exact products, metrics, and quantities you’re entitled to. A compliance review isn’t complete until your actual usage reconciles with those entitlements (an Oracle EBS entitlement reconciliation).
Checklist: Entitlement Reconciliation
- ✔ Gather all Oracle EBS order documents and contracts
- ✔ Verify that all licensing metrics in use match what was purchased
- ✔ Confirm the number of licenses (by type) matches current usage
- ✔ Check for any modules in use that aren’t in your entitlements (and vice versa)
- ✔ Identify any expired licenses and ensure support renewals are up to date
Table: Entitlement Reconciliation Framework
| Contract Area | What to Validate | Why |
|---|---|---|
| User licenses | Quantities and types of user licenses | Must match actual usage |
| Module licenses | Scope of modules and metrics purchased | Ensures no unlicensed usage |
| Support coverage | Support status for each component | Avoids lapse and fees |
| Terms & definitions | Definitions of metrics and user types in contract | Clarifies metric definitions |
Remember, your contract defines compliance — not how you think the software works. Ensure your usage data aligns with your entitlements so that if Oracle audits you, you can prove you’re only using what you paid for.
Step 7 – Flag High-Risk Areas for Immediate Remediation
The final step is to address any high-risk issues before they become audit problems. Some areas consistently draw Oracle’s attention, so prioritize them for immediate remediation to reduce exposure.
Checklist: High-Risk EBS Audit Triggers
- ✔ Payroll/HR employee count miscalculations
- ✔ Users accessing modules you haven’t licensed (unlicensed module access)
- ✔ Misaligned user responsibilities/licenses
- ✔ Inactive users still active in the system
- ✔ Customizations or interfaces that bypass module access controls
- ✔ Order Management transaction counts (e.g,. order lines) exceeding licensed amounts
- ✔ Missing or outdated entitlement documentation (can’t prove you own what you use)
Table: High-Risk Priority List
| Risk Area | Priority | Reason |
|---|---|---|
| Payroll/HR metrics | Very high | Easy audit target |
| Responsibility mapping | Very high | Common misalignment |
| Integration or system users | High | Often overlooked |
| Unlicensed module usage | High | Immediate exposure |
| Employee count errors | Medium | Needs correction |
Tackle the highest-priority issues (such as payroll count errors and misaligned responsibilities) first, as they pose the greatest risk. Fixing problems early prevents them from escalating into costly violations if Oracle audits you.
5 Expert Takeaways
- Accurate responsibility mapping drives Oracle EBS user licensing compliance.
- Employee-based metrics (for HR and Payroll) require continuous tracking to stay within licensed limits.
- Customizations and integrations often create hidden license requirements, so review them regularly to avoid surprises.
- Non-production environments must be licensed like production — no free pass for test or dev instances.
- Contracts define compliance, so align your usage with what you’ve purchased.
Small technical details can create big licensing exposures, but a structured, regular review of your Oracle EBS environment will keep your organization audit-ready and compliant for read-only use cases.
