<snip>
//SMPPTFIN DD  DSN=xxxxx.xxxxx.R14.SMPPTS,
//             DISP=SHR
</snip>

The SMPPTS dataset is the *OUTPUT* of the receive process, not the input. 
SMPPTFIN is the input to the process.

SMPPTFIN is *REQUIRED* to be FB/80. This can be a PS file (typically *.SMPMCS) 
or a PDS member *.SMPMCS(member).

It *CANNOT* be a PDS read as a sequential (which is what was coded below). 
Also, as coded, you are trying to use the *SAME* dataset as both input and 
output simultaneously.
AFAIK, SMP/E will not do this .

To change the above(although I really think you should RTFM before proceeding), 
try

//SMPPTFIN DD  DSN=xxxxx.xxxxx.R14.SMPPTS(uk*****),
//             DISP=SHR  (concatenate as required)



<snip>
The SMPPTS is a PDS file but still i get the same error message.

General Data                          Current Allocation
 Management class . . : xxxxxx        Allocated cylinders : 100
 Storage class  . . . : xxxxxx       Allocated extents . : 1
  Volume serial . . . : xxxxxx         Maximum dir. blocks : 20
  Device type . . . . : 3390
 Data class . . . . . : xxxxx
  Organization  . . . : PO            Current Utilization
  Record format . . . : FB             Used cylinders  . . : 1
  Record length . . . : 256            Used extents  . . . : 1
  Block size  . . . . : 27904          Used dir. blocks  . : 1
  1st extent cylinders: 100            Number of members . : 5
  Secondary cylinders : 50
  Data set name type  : PDS           Dates
                                       Creation date . . . : 2013/02/07
                                       Referenced date . . : 2013/02/07
                                       Expiration date . . : ***None***

On Thu, Feb 7, 2013 at 9:54 PM, Steve Thompson <sthomp...@us.ibm.com> wrote:

> From:   "Staller, Allan" <allan.stal...@kbmg.com>
> Date:   02/07/2013 10:20 AM
>
>
> <SNIPPAGE>
> You have specified the SMPPTS (a PDS/PDSE) as sequential  input. This 
> means the "directory" of the PDS/PDSE is being read as a logical record.
> As we all know, the "logical record length" of a PDS directory entry 
> is 256, not 80, hence your problem.
>
> <SNIP>
>
> Thank you, Allan. Much better answer than mine, because I got too 
> close to the tree.... I was trying to figure this out using the 
> diagnostic info presented with the infocenter based doc...
</snip>

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