If your legacy application executes on a mainframe, Micro Focus recommends that you convert the application source to workstation encoding. If that is not practical, you can have COBOL Analyzer convert it for you, using the options on the tab of the Workspace Options window.
During analysis and transformation, hexadecimal literals in COBOL programs and BMS files are translated into character literals using this setting.
You must specify the SOURCE-ENCODING directive in either project or workspace settings so that it matches the character encoding used. See SOURCE-ENCODING in your Micro Focus product Help for more information on this directive.