1. Globally and at System level, i.e. no user is required to be logged in. This is the preferred way if you are configuring a server and planning to use boot strapped program that needs JAVA_HOME variable.
$ vi /etc/environment
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JAVA_HOME=/usr/lib/jvm/java-7-oracle
...
2. Globally and set for all logged in user, i.e. one user is needed to be logged in, to have the JAVA_HOME variable set.$ vi /etc/bash.bashrc
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JAVA_HOME=/usr/lib/jvm/java-7-oracle
...
3. User specific. Then the variable is only set when the designated user is logged in.$ vi /home/$USER/bash.bashrc
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JAVA_HOME=/usr/lib/jvm/java-7-oracle
...
If you have different installed JDK you might find this blog useful on how to manage different JDK on Ubunut http://magnus-k-karlsson.blogspot.se/2012/03/managing-multiple-java-installation-on.html.
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