You could do it with Co:Z Batch + Dataset Pipes without creating a
temporary file:

//SHELL EXEC PGM=COZBATCH
//IN  DD DISP=SHR,DSN=...
//OUT DD DISP=(NEW,CATLG),DSN=...,
//       DCB=(RECFM=VB,LRECL=27994),SPACE=....
//STDIN DD *
  fromdsn -b //DD:IN  |
     todsn -b -l l4  //DD:OUT
//

Now, if you meant "flat file" as a Unix file, then just:

//STDIN DD *
    todsn -b -l l4 //DD:OUT < /path/to/my.flat.file
//

Kirk Wolf
Dovetailed Technologies
http://dovetail.com

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