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8.1.4.2 REPLACING Phrase
In the discussion that follows, each operand can consist of one of the following:
When the REPLACING phrase is specified, the library text is copied, and each properly matched occurrence of operand-1 within the library text is replaced by the associated operand-2.
pseudo-text
A sequence of character-strings and/or separators bounded by, but not including, pseudo-text-1 delimiters (==). Both characters of each pseudo-text-1 delimiter must appear on one line; however, character-strings within pseudo-text-1 can be continued.
Any individual character-string within pseudo-text-1 can be up to 322 characters long. Keep in mind that a character-string must be delimited by separators. For more information, see "Characters" in topic 1.1.
Pseudo-text-1 refers to pseudo-text when used for operand-1, and pseudo-text-2 refers to pseudo-text when used for operand-2.
Pseudo-text-1 cannot be null, nor can it consist solely of the space character, separator comma, separator semicolon, and/or of comment lines. Beginning and ending blanks are not included in the text comparison process. Embedded blanks are used in the text comparison process to indicate multiple text words.
Pseudo-text must not contain the word COPY.

X Pseudo-text-1 can consist solely of the separator comma or separator
X semicolon.
Pseudo-text-2 can be null; it can consist solely of space characters and/or comment lines. Each text word in pseudo-text-2 that is to be copied into the program is placed in the same area of the resultant program as the area in which it appears in pseudo-text-2.

X Pseudo-text can contain DBCS or EUC user-defined words, but the
X characters cannot be continued across lines.
identifier
Can be defined in any Data Division section.
literal
Can be numeric or nonnumeric.

X Can be a DBCS literal.
word
Can be any single COBOL word (except COPY).

X You can include the non-separator COBOL characters (for example, +, *,
X /, $, <, >, and =) as part of a COBOL word when used as REPLACING
X operands. In addition, the hyphen character can be at the beginning
X or end of the word.
For purposes of matching, each identifier-1, literal-1, or word-1 is treated, respectively, as pseudo-text containing only identifier-1, literal-1, or word-1.

X Either operand, or both, can be a DBCS or EUC name or DBCS literal.

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