(Updated 20-May-2020: Added clarification that the minimum requirement for this feature is Oracle E-Business Suite 12.2.6 or ATG Delta 6.)
I'm pleased to inform you of a recent enhancement delivered for Oracle E-Business Suite 12.2 If you are using Oracle E-Business Suite 12.2.6 or higher or have applied ATG Delta 6, you may now configure single sign-on and local authentication at the site and server level.
Note: Local authentication simply means that native Oracle E-Business Suite authentication is used.
With prior Oracle E-Business Suite releases, if you integrated with Oracle Access Manager for Single Sign-On all users were configured for single sign-on authentication. Now, you may choose to register your Oracle E-Business Suite 12.2.6+ instance with Oracle Access Manager for single sign-on for all internal users while external users may use local user authentication. This enhancement also eliminates the requirement to add external users to your corporate directory service.
For additional details regarding the configuration options refer to Section 6.5 Configure Single Sign-on at Site or Server Level in Integrating Oracle E-Business Suite Release 12.2 with Oracle Access Manager 11gR2 (11.1.2) using Oracle E-Business Suite AccessGate (Doc ID 1576425.1)