I am able to login to EBS with user passwords which is part of FND_USER table but not the passwords stored in AD. The log file does not show any error in R12 applications as the FND_USER passwords is successfully authenticated. I might be missing some setup as the EBS- OID -DIP- AD synchronization is not authenticating with AD.
Can EBS directly integrate with OID and access MS AD authentication
Was OID synchronization and provisioning performed? Did you complete "Section 5: Provisioning" in the doc?
The list of supported methods can be found in (Overview of Single Sign-On Integration Options for Oracle E-Business Suite (Doc ID 1388152.1)).
I have performed the following steps:
$FND_TOP/bin/txkrun.pl -script=SetSSOReg -registerinstance=yes
$FND_TOP/bin/txkrun.pl -script=SetSSOReg -registeroid=yes
I have not performed Section 5.5.1 to 5.5.3
Also as per Overview of Single Sign-On Integration Options for Oracle E-Business Suite (Doc ID 1388152.1)
OAM and OID is mandatory components even you are not using SSO for EBS...
3.3 Integration with Third-Party Access Management Systems and LDAP Directories
There are numerous dependencies on Oracle Access Manager and Oracle Internet Directory in a single sign-on solution with Oracle E-Business Suite. Due to these underlying dependencies, Oracle Access manager and Oracle Internet Directory are mandatory components of the integration even when integrating with third-party systems.
When integrating with a third-party LDAP, the third-party LDAP synchronizes user attributes with Oracle Internet Directory which synchronizes user attributes with the Oracle E-Business Suite database (FND_USER).