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Check the value of NLS_LANGUAGE.
You may also have a look at:
Note: 241047.1 - The Priority of NLS Parameters Explained
Thank you for the metalink Note reference. It was indeed helpful.
However a small question remains. When we set the 'Default Application Language' or the 'Current Session Language' in Preferences (for the Oracle Apps login), where does it get stored. I understand that the language changes accordingly, but does that updated language reflect in userenv('LANG') once a query runs on the server (in a Report).
Please excuse my ignorance.