The CREATE DIRECTORY command in Oracle SQL is used to create a directory object for data base-centric processes to write to.

This allows a system administrator to create a directory object (or alias) for use within the Application, insulating the user from knowledge of the directory structure.

YOu will then need to grant the appropriate access to the directory for the data base users

For example, 

if the directory on the data base server is D:\HighLine\eP\Output
In SQL as the SYS user:

%%quote
{{{
CREATE OR REPLACE DIRECTORY EP_OUTPUT AS 'D:\HighLine\eP\Output';\\
GRANT READ,WRITE ON DIRECTORY EP_OUTPUT TO P2K WITH GRANT OPTION;
}}} 
%%

and then in the launch screen of the you would enter EP_OUTPUT as the directory name